Tripadvisor (NASDAQ: TRIP) is one of 11 public companies in the “Travel Agents” industry, but how does it contrast to its peers? We will compare Tripadvisor to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Tripadvisor and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tripadvisor 6 17 0 0 1.74
Tripadvisor Competitors 87 648 966 43 2.55

Tripadvisor presently has a consensus price target of $39.71, suggesting a potential upside of 15.79%. As a group, “Travel Agents” companies have a potential upside of 18.40%. Given Tripadvisor’s peers stronger consensus rating and higher probable upside, analysts clearly believe Tripadvisor has less favorable growth aspects than its peers.

Profitability

This table compares Tripadvisor and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tripadvisor 4.26% 6.81% 4.13%
Tripadvisor Competitors -18.70% -60.07% -9.98%

Insider and Institutional Ownership

88.8% of Tripadvisor shares are owned by institutional investors. Comparatively, 75.3% of shares of all “Travel Agents” companies are owned by institutional investors. 1.1% of Tripadvisor shares are owned by company insiders. Comparatively, 17.5% of shares of all “Travel Agents” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tripadvisor and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tripadvisor $1.48 billion $120.00 million 72.96
Tripadvisor Competitors $3.16 billion $214.58 million 15.50

Tripadvisor’s peers have higher revenue and earnings than Tripadvisor. Tripadvisor is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Tripadvisor has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, Tripadvisor’s peers have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Summary

Tripadvisor peers beat Tripadvisor on 7 of the 13 factors compared.

Tripadvisor Company Profile

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.

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