TripAdvisor (NASDAQ: TRIP) and Yatra Online (NASDAQ:YTRA) are both retail/wholesale 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.

Earnings & Valuation

This table compares TripAdvisor and Yatra Online’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TripAdvisor $1.50 billion 3.72 $202.00 million $0.70 56.44
Yatra Online $145.22 million 2.17 -$28.04 million ($4.03) -2.56

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

Profitability

This table compares TripAdvisor and Yatra Online’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%
Yatra Online -62.56% N/A -74.04%

Institutional & Insider Ownership

89.1% of TripAdvisor shares are held by institutional investors. Comparatively, 22.9% of Yatra Online shares are held by institutional investors. 1.0% of TripAdvisor 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for TripAdvisor and Yatra Online, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TripAdvisor 5 14 1 0 1.80
Yatra Online 0 0 4 0 3.00

TripAdvisor currently has a consensus target price of $48.27, suggesting a potential upside of 22.16%. Yatra Online has a consensus target price of $14.95, suggesting a potential upside of 45.15%. Given Yatra Online’s stronger consensus rating and higher probable upside, analysts clearly believe Yatra Online is more favorable than TripAdvisor.

Summary

TripAdvisor beats Yatra Online on 9 of the 12 factors compared between the two stocks.

About TripAdvisor

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.

About Yatra Online

Yatra Online, Inc. is an India-based consumer travel platform and online travel agent. The Company’s segments include Air Ticketing, Hotels and Packages, and Others. Through Internet and mobile-based platform and call-centers, the Company provides the facility to book and service international and domestic air tickets to customer through business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C) channel. Through an Internet and mobile-based platform, call-centers and branch offices, the Company provides holiday packages and hotel reservations. The Other segment includes the advertisement income from hosting advertisements on its Internet Websites, income from sale of rail and bus tickets, and income from facilitating Website access to travel insurance companies. It offers multiple mobile applications for a range of consumer segments and services, including Yatra, Yatra Mini, Yatra Web Check-In, Yatra Corporate, Travelguru HomeStay and Yatra Hoteliers DESTranet.

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