Tripadvisor (NASDAQ: TRIP) and Despegar.com (NYSE:DESP) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Valuation & Earnings

This table compares Tripadvisor and Despegar.com’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tripadvisor $1.48 billion 3.29 $120.00 million $0.47 74.68
Despegar.com $411.16 million 4.25 $17.79 million N/A N/A

Tripadvisor has higher revenue and earnings than Despegar.com.

Analyst Ratings

This is a summary of current recommendations for Tripadvisor and Despegar.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tripadvisor 5 17 0 0 1.77
Despegar.com 0 2 3 0 2.60

Tripadvisor currently has a consensus target price of $39.13, suggesting a potential upside of 11.47%. Despegar.com has a consensus target price of $35.80, suggesting a potential upside of 37.53%. Given Despegar.com’s stronger consensus rating and higher probable upside, analysts plainly believe Despegar.com is more favorable than Tripadvisor.

Profitability

This table compares Tripadvisor and Despegar.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tripadvisor 4.26% 6.81% 4.13%
Despegar.com N/A N/A N/A

Institutional and Insider Ownership

88.8% of Tripadvisor shares are held by institutional investors. Comparatively, 72.6% of Despegar.com shares are held by institutional investors. 1.1% of Tripadvisor shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Tripadvisor beats Despegar.com on 7 of the 11 factors compared between the two stocks.

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.

Despegar.com Company Profile

Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.

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