Trivago N.V. ADS (NASDAQ:TRVG) and LivePerson (NASDAQ:LPSN) Critical Analysis

LivePerson (NASDAQ:LPSNGet Free Report) and Trivago N.V. ADS (NASDAQ:TRVGGet Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Risk and Volatility

LivePerson has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for LivePerson and Trivago N.V. ADS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LivePerson 1 0 0 0 1.00
Trivago N.V. ADS 1 5 0 0 1.83

Trivago N.V. ADS has a consensus target price of $3.44, suggesting a potential downside of 36.46%. Given Trivago N.V. ADS’s stronger consensus rating and higher possible upside, analysts clearly believe Trivago N.V. ADS is more favorable than LivePerson.

Profitability

This table compares LivePerson and Trivago N.V. ADS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LivePerson -26.24% N/A -6.13%
Trivago N.V. ADS 2.10% 7.39% 4.25%

Valuation & Earnings

This table compares LivePerson and Trivago N.V. ADS”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LivePerson $243.74 million 0.10 -$67.23 million ($10.18) -0.19
Trivago N.V. ADS $620.90 million 0.62 $12.69 million $0.05 108.20

Trivago N.V. ADS has higher revenue and earnings than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than Trivago N.V. ADS, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

79.8% of LivePerson shares are held by institutional investors. Comparatively, 4.5% of Trivago N.V. ADS shares are held by institutional investors. 2.0% of LivePerson shares are held by company insiders. Comparatively, 6.5% of Trivago N.V. ADS shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Trivago N.V. ADS beats LivePerson on 11 of the 13 factors compared between the two stocks.

About LivePerson

(Get Free Report)

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

About Trivago N.V. ADS

(Get Free Report)

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.

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