Expedia (NASDAQ: EXPE) and Yatra Online (NASDAQ:YTRA) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. Yatra Online does not pay a dividend. Expedia pays out 56.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Expedia and Yatra Online’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Expedia $9.45 billion 2.30 $1.19 billion $2.11 67.98
Yatra Online $151.77 million 2.26 -$41.97 million ($5.42) -1.87

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Expedia and Yatra Online, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia 0 4 20 1 2.88
Yatra Online 0 0 4 0 3.00

Expedia presently has a consensus price target of $162.48, suggesting a potential upside of 13.27%. Yatra Online has a consensus price target of $14.95, suggesting a potential upside of 47.29%. Given Yatra Online’s stronger consensus rating and higher possible upside, analysts clearly believe Yatra Online is more favorable than Expedia.

Profitability

This table compares Expedia and Yatra Online’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Expedia 2.08% 5.47% 1.19%
Yatra Online -103.27% -753.25% -130.03%

Institutional & Insider Ownership

84.4% of Expedia shares are owned by institutional investors. Comparatively, 22.0% of Yatra Online shares are owned by institutional investors. 20.9% of Expedia shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Expedia beats Yatra Online on 12 of the 15 factors compared between the two stocks.

Expedia Company Profile

Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.

Yatra Online Company Profile

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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