Angie’s List (NASDAQ: ANGI) and Liberty TripAdvisor Holdings (NASDAQ:LTRPA) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitabiliy and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Angie’s List and Liberty TripAdvisor Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Angie’s List 1 5 1 0 2.00
Liberty TripAdvisor Holdings 0 1 0 0 2.00

Angie’s List currently has a consensus target price of $9.31, suggesting a potential downside of 27.02%. Given Angie’s List’s higher probable upside, equities analysts clearly believe Angie’s List is more favorable than Liberty TripAdvisor Holdings.

Institutional & Insider Ownership

71.4% of Angie’s List shares are held by institutional investors. Comparatively, 95.7% of Liberty TripAdvisor Holdings shares are held by institutional investors. 18.2% of Angie’s List shares are held by insiders. Comparatively, 4.0% of Liberty TripAdvisor Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Angie’s List and Liberty TripAdvisor Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Angie’s List $312.61 million 2.44 $11.14 million ($0.02) -638.00
Liberty TripAdvisor Holdings $1.55 billion 0.56 $238.00 million $0.39 29.62

Liberty TripAdvisor Holdings has higher revenue and earnings than Angie’s List. Angie’s List is trading at a lower price-to-earnings ratio than Liberty TripAdvisor Holdings, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Angie’s List has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Liberty TripAdvisor Holdings has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.

Profitability

This table compares Angie’s List and Liberty TripAdvisor Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Angie’s List -0.35% -41.36% -0.67%
Liberty TripAdvisor Holdings 1.87% 0.54% 0.39%

Summary

Liberty TripAdvisor Holdings beats Angie’s List on 8 of the 12 factors compared between the two stocks.

About Angie’s List

Angie’s List, Inc. operates a national local services consumer review service and marketplace. As of December 31, 2016, the Company helped facilitate transactions between over five million members and its collection of service providers in over 700 categories of service nationwide. Its tools, services and content across multiple platforms enables consumers to research, shop for and purchase local services for needs, as well as rate and review the providers of these services across the United States. Its ratings and reviews assist its members in identifying and hiring the provider for their local service needs. Its services include member services and service provider services. It compiles a breadth of relevant, member-generated ratings and reviews that provide insights, which could otherwise be difficult for consumers to obtain on their own. Its primary source of service provider revenue is term-based sales of advertising to service providers.

About Liberty TripAdvisor Holdings

Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.

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