Head-To-Head Comparison: TripAdvisor (NASDAQ:TRIP) & Online Vacation Center (OTCMKTS:ONVC)

Online Vacation Center (OTCMKTS:ONVC) and TripAdvisor (NASDAQ:TRIP) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Online Vacation Center and TripAdvisor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Online Vacation Center	0	0	0	0	0.00
TripAdvisor	5	7	1	1	1.86

TripAdvisor has a consensus target price of $16.06, indicating a potential upside of 32.09%. Given TripAdvisor’s stronger consensus rating and higher possible upside, analysts plainly believe TripAdvisor is more favorable than Online Vacation Center.

Risk and Volatility

Online Vacation Center has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Online Vacation Center and TripAdvisor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Online Vacation Center	$20.10 million	0.88	$750,000.00	$0.08	31.25
TripAdvisor	$1.84 billion	0.77	$5.00 million	$0.64	19.00

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

Institutional and Insider Ownership

99.0% of TripAdvisor shares are owned by institutional investors. 71.3% of Online Vacation Center shares are owned by insiders. Comparatively, 3.1% of TripAdvisor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Online Vacation Center and TripAdvisor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Online Vacation Center	3.00%	N/A	N/A
TripAdvisor	4.23%	14.77%	3.91%

Summary

TripAdvisor beats Online Vacation Center on 11 of the 15 factors compared between the two stocks.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.

About TripAdvisor

TripAdvisor, Inc. operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Viator's segment provides pure-play experiences online travel agency that comprehensive and connecting travelers to discover and book tours, activities, and attractions from experience operators. TheFork segment provides an online marketplace that enables diners to discover and book online reservations at restaurants. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. Tripadvisor, Inc. is a subsidiary of Liberty TripAdvisor Holdings, Inc.