Booking vs Hoteles City Express Which Performs Better?

Booking Holdings Inc. (BKNG) and Hoteles City Express are two prominent players in the hospitality industry, each offering unique opportunities for investors. Booking Holdings operates an online travel booking platform, with a strong market presence and a diverse range of services. On the other hand, Hoteles City Express is a leading hotel chain in Mexico and Latin America, known for its strategic locations and focus on business travelers. Both stocks offer potential for growth and profitability, but each comes with its own set of risks and rewards.

Booking or Hoteles City Express?

When comparing Booking and Hoteles City Express, 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 Hoteles City Express.

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 0.7%, while Hoteles City Express 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, Hoteles City Express 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 32.97 and Hoteles City Express's P/E ratio at 18.16. 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 -45.45 while Hoteles City Express's P/B ratio is 0.27.

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 Hoteles City Express's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Hoteles City Express's ROE at 1.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4951.94 for Booking and Mex$4.43 for Hoteles City Express. Over the past year, Booking's prices ranged from $3079.50 to $5069.44, with a yearly change of 64.62%. Hoteles City Express's prices fluctuated between Mex$3.96 and Mex$6.00, with a yearly change of 51.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.