eLong (NASDAQ: LONG) and Tuniu (NASDAQ:TOUR) are both small-cap cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
eLong -120.75% -115.59% -58.03%
Tuniu -29.69% -22.38% -11.10%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for eLong and Tuniu, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eLong 0 0 0 0 N/A
Tuniu 0 0 2 0 3.00

Tuniu has a consensus target price of $11.00, indicating a potential upside of 42.67%. Given Tuniu’s higher possible upside, analysts plainly believe Tuniu is more favorable than eLong.

Volatility & Risk

eLong has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, Tuniu has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Valuation and Earnings

This table compares eLong and Tuniu’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eLong N/A N/A N/A ($4.21) -4.28
Tuniu $1.52 billion 0.64 -$349.58 million ($1.33) -5.80

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

Summary

Tuniu beats eLong on 8 of the 8 factors compared between the two stocks.

eLong Company Profile

eLong, Inc. provides mobile and online accommodation reservations in China. The Company offers consumers an accommodation network of domestic and international properties across the world. The Company enables travelers to make informed accommodation booking decisions through its Website, mobile applications and tools, such as destination guides, photos, virtual tours, maps and user reviews. The Company offers round the clock accommodation booking, and a range of options with various booking models, price points and payment choices for its customers, including budget, three, four and five-star hotels, short-stay apartments and groupbuy hotels. The Company acts primarily as an agent in its accommodation transactions. The Company provides reservations of air tickets, train tickets, travel insurance and other transportation-related services. The Company gets advertising revenues from its eLong and Xici Websites.

Tuniu 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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