Best Buy vs Expedia Which Is More Reliable?

Best Buy and Expedia are two well-known companies in the technology and travel industries, respectively. Both companies have seen their stocks perform well in recent years, but they have faced different challenges and opportunities. Best Buy has benefited from the increasing demand for electronic devices and appliances, while Expedia has navigated the ups and downs of the travel industry. Investors may consider various factors when comparing these two stocks, such as revenue growth, profitability, and market trends.

Best Buy or Expedia?

When comparing Best Buy and Expedia, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Best Buy and Expedia.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Best Buy has a dividend yield of 4.24%, while Expedia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%. On the other hand, Expedia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Best Buy P/E ratio at 14.98 and Expedia's P/E ratio at 23.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 5.23 while Expedia's P/B ratio is 18.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 39.46% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.10 for Best Buy and $189.48 for Expedia. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. Expedia's prices fluctuated between $107.25 and $192.28, with a yearly change of 79.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.