Travelport Worldwide Limited (NYSE: TVPT) and Tuniu Corporation (NASDAQ:TOUR) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitabiliy.

Analyst Ratings

This is a summary of current ratings and price targets for Travelport Worldwide Limited and Tuniu Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelport Worldwide Limited 0 2 1 0 2.33
Tuniu Corporation 0 0 2 0 3.00

Travelport Worldwide Limited presently has a consensus target price of $15.75, suggesting a potential upside of 11.31%. Tuniu Corporation has a consensus target price of $11.60, suggesting a potential upside of 42.68%. Given Tuniu Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Tuniu Corporation is more favorable than Travelport Worldwide Limited.

Volatility & Risk

Travelport Worldwide Limited has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Tuniu Corporation has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Profitability

This table compares Travelport Worldwide Limited and Tuniu Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelport Worldwide Limited 4.42% -48.13% 5.06%
Tuniu Corporation -24.17% -42.30% -21.47%

Dividends

Travelport Worldwide Limited pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Tuniu Corporation does not pay a dividend. Travelport Worldwide Limited pays out 35.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Travelport Worldwide Limited and Tuniu Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Travelport Worldwide Limited $2.39 billion 0.74 $430.35 million $0.85 16.65
Tuniu Corporation $1.31 billion 0.58 -$312.16 million ($2.53) -3.21

Travelport Worldwide Limited has higher revenue and earnings than Tuniu Corporation. Tuniu Corporation is trading at a lower price-to-earnings ratio than Travelport Worldwide Limited, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

96.8% of Travelport Worldwide Limited shares are owned by institutional investors. 1.2% of Travelport Worldwide Limited shares are owned by company insiders. Comparatively, 76.1% of Tuniu Corporation shares are owned by company 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.

Summary

Travelport Worldwide Limited beats Tuniu Corporation on 8 of the 15 factors compared between the two stocks.

Travelport Worldwide Limited Company Profile

Travelport Worldwide Limited provides a travel commerce platform, which offers distribution, technology, payment, mobile and other solutions for the travel and tourism industry. The Company connects travel providers, such as airlines and hotel chains with online and offline travel agencies and other travel buyers in its business-to-business (B2B) travel commerce platform (its Travel Commerce Platform). It also provides a range of digital and mobile services that allow airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through mobile services, including applications, corporate booking tools, mobile Web and mobile messaging. Travel Commerce Platform connects travel providers and travel buyers, as well as travel agencies, travel management companies (TMCs) and corporations. As of December 31, 2016, it provided air distribution services to approximately 400 airlines globally, including approximately 125 low cost carriers (LCCs).

Tuniu Corporation Company Profile

Tuniu Corporation is an online leisure travel company. The Company offers a selection of packaged tours, including organized tours and self-guided tours, as well as travel-related services for leisure travelers. Its online platform, which consists of its tuniu.com Website and mobile platform, provides product and travel information to enable leisure travelers to plan their travels. Its organized tours offer pre-arranged itineraries, transportation, accommodations, entertainment, meals and tour guide services. Its self-guided tours consist of combinations of flights and hotel bookings and other optional add-ons, such as airport pick-ups. Its other travel-related services include sales of tourist attraction tickets, visa processing services, financial services, hotel booking services and air ticketing services. Its online platform contains travel guides featuring photos, information and recommendations for all destinations it covers.

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