Expedia (NASDAQ: EXPE) and Tuniu Corporation (NASDAQ:TOUR) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Institutional & Insider Ownership

84.4% of Expedia shares are owned by institutional investors. 21.0% of Expedia shares are owned by insiders. Comparatively, 76.1% of Tuniu Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

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

Profitability

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

Net Margins Return on Equity Return on Assets
Expedia 3.49% 10.98% 3.40%
Tuniu Corporation -23.64% -34.20% -17.07%

Risk and Volatility

Expedia has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Tuniu Corporation has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Earnings & Valuation

This table compares Expedia and Tuniu Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Expedia $9.45 billion 2.37 $1.19 billion $2.11 70.13
Tuniu Corporation $1.06 billion 0.68 -$243.11 million ($1.96) -3.95

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Expedia and Tuniu Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia 0 4 22 1 2.89
Tuniu Corporation 0 0 2 0 3.00

Expedia currently has a consensus price target of $163.07, suggesting a potential upside of 10.20%. Tuniu Corporation has a consensus price target of $11.00, suggesting a potential upside of 41.94%. Given Tuniu Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Tuniu Corporation is more favorable than Expedia.

Summary

Expedia beats Tuniu Corporation on 11 of the 16 factors compared between the two stocks.

About Expedia

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.

About Tuniu Corporation

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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