Booking vs Hostelworld Which Is a Better Investment?

Booking Holdings and Hostelworld Group are two leading online travel companies that offer booking services for accommodations around the world. While Booking Holdings caters to a larger and more diverse market including hotels, vacation rentals, and other lodging options, Hostelworld specializes in budget accommodations such as hostels and budget hotels. Both companies have seen growth in their stocks in recent years, but Booking Holdings' larger market share and diverse offering may be more appealing to investors seeking stability and potential for growth.

Booking or Hostelworld?

When comparing Booking and Hostelworld, 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 Hostelworld.

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 Hostelworld 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, Hostelworld 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 Hostelworld's P/E ratio at 14.44. 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 Hostelworld's P/B ratio is 3.50.

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 Hostelworld's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Hostelworld's ROE at 24.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5216.09 for Booking and €1.70 for Hostelworld. Over the past year, Booking's prices ranged from $3180.00 to $5337.24, with a yearly change of 67.84%. Hostelworld's prices fluctuated between €1.48 and €2.00, with a yearly change of 35.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.