Booking vs Expedia Which Outperforms?

Booking Holdings and Expedia Group are two major players in the online travel booking industry. Both companies facilitate the booking of flights, hotels, and other travel services for millions of customers around the world. Booking Holdings, which owns popular brands such as Booking.com and Priceline, has a larger market share and higher revenue than Expedia. However, Expedia has been investing heavily in technology and expanding its global reach, making it a strong competitor in the market. Investors should carefully consider the financial performance and growth potential of both companies before making investment decisions.

Booking or Expedia?

When comparing Booking 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 Booking 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. Booking has a dividend yield of 0.67%, while Expedia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Booking reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.57%. 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 Booking P/E ratio at 34.67 and Expedia's P/E ratio at 22.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Booking P/B ratio is -47.80 while Expedia's P/B ratio is 17.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Booking has seen a 5-year revenue growth of 0.93%, while Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5216.09 for Booking and $182.24 for Expedia. Over the past year, Booking's prices ranged from $3180.00 to $5337.24, with a yearly change of 67.84%. Expedia's prices fluctuated between $107.25 and $192.34, with a yearly change of 79.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.