Booking vs Trip.com Which Is a Better Investment?

Booking Holdings Inc. (BKNG) and Trip.com Group Ltd. (TCOM) are two major players in the online travel industry. Both companies provide booking services for flights, hotels, and other travel-related activities. While Booking Holdings Inc. is primarily focused on Western markets, Trip.com Group Ltd. has a strong presence in the Asian market. Investors often compare the two stocks as they compete for market share in the highly competitive online travel industry. The performance of both stocks is closely tied to the overall health of the travel industry and consumer spending habits.

Booking or Trip.com?

When comparing Booking and Trip.com, 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 Trip.com.

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 Trip.com 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, Trip.com 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 33.31 and Trip.com's P/E ratio at 21.60. 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 -45.93 while Trip.com's P/B ratio is 2.32.

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 Trip.com's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Trip.com's ROE at 11.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4996.21 for Booking and $63.33 for Trip.com. Over the past year, Booking's prices ranged from $3079.50 to $5069.44, with a yearly change of 64.62%. Trip.com's prices fluctuated between $31.55 and $69.67, with a yearly change of 120.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.