Critical Review: Global-e Online (NASDAQ:GLBE) versus Expedia Group (NASDAQ:EXPE)

Global-e Online (NASDAQ:GLBE) and Expedia Group (NASDAQ:EXPE) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Global-e Online and Expedia Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global-e Online	0.82%	0.81%	0.59%
Expedia Group	9.66%	64.15%	6.25%

Valuation and Earnings

This table compares Global-e Online and Expedia Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global-e Online	$752.76 million	8.24	-$75.55 million	$0.03	1,218.33
Expedia Group	$13.69 billion	2.37	$1.23 billion	$10.45	25.34

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

Volatility & Risk

Global-e Online has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

94.6% of Global-e Online shares are owned by institutional investors. Comparatively, 90.8% of Expedia Group shares are owned by institutional investors. 11.6% of Global-e Online shares are owned by insiders. Comparatively, 9.1% of Expedia Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Global-e Online and Expedia Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global-e Online	2	0	10	1	2.77
Expedia Group	0	22	13	1	2.42

Global-e Online currently has a consensus target price of $50.09, suggesting a potential upside of 37.05%. Expedia Group has a consensus target price of $290.10, suggesting a potential upside of 9.54%. Given Global-e Online’s stronger consensus rating and higher probable upside, analysts plainly believe Global-e Online is more favorable than Expedia Group.

Summary

Expedia Group beats Global-e Online on 8 of the 14 factors compared between the two stocks.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.