TripAdvisor (NASDAQ: TRIP) and The Priceline Group (NASDAQ:PCLN) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitabiliy and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for TripAdvisor and The Priceline Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TripAdvisor 5 16 1 0 1.82
The Priceline Group 0 5 24 0 2.83

TripAdvisor presently has a consensus price target of $48.27, indicating a potential upside of 21.89%. The Priceline Group has a consensus price target of $1,952.88, indicating a potential downside of 1.97%. Given TripAdvisor’s higher possible upside, equities research analysts plainly believe TripAdvisor is more favorable than The Priceline Group.

Insider and Institutional Ownership

89.3% of TripAdvisor shares are owned by institutional investors. Comparatively, 95.2% of The Priceline Group shares are owned by institutional investors. 1.0% of TripAdvisor shares are owned by company insiders. Comparatively, 0.4% of The Priceline Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares TripAdvisor and The Priceline Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TripAdvisor $1.50 billion 3.73 $202.00 million $0.70 56.57
The Priceline Group $11.01 billion 8.89 $4.17 billion $44.31 44.96

The Priceline Group has higher revenue and earnings than TripAdvisor. The Priceline Group is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

TripAdvisor has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, The Priceline Group has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Profitability

This table compares TripAdvisor and The Priceline Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TripAdvisor 6.87% 8.87% 5.77%
The Priceline Group 20.12% 33.94% 16.53%

Summary

The Priceline Group beats TripAdvisor on 10 of the 14 factors compared between the two stocks.

TripAdvisor Company Profile

TripAdvisor, Inc. owns and operates a portfolio of online travel brands. TripAdvisor, the Company’s brand, is a travel site. The Company operates through two segments: Hotel and Non-Hotel. The Company’s Hotel segment includes click-based advertising and transaction; display-based and subscription-based advertising, and other hotel operations. The Non-Hotel segment includes Attractions, Restaurants and Vacation Rentals businesses. The Company’s platform also enables users to compare real-time pricing and availability for these experiences, as well as to book hotels, flights, cruises, vacation rentals, tours, activities and attractions, and restaurants, on either a TripAdvisor site or application, or a travel partner site or application. As of December 31, 2016, the Company’s TripAdvisor-branded Websites included tripadvisor.com in the United States and localized versions of the TripAdvisor Website in 48 markets and 28 languages around the world.

The Priceline Group Company Profile

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

Receive News & Ratings for TripAdvisor Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TripAdvisor Inc. and related companies with MarketBeat.com's FREE daily email newsletter.