Booking vs Tripadvisor Which Performs Better?

Booking Holdings and Tripadvisor are two major players in the online travel industry, offering users the ability to book accommodations, flights, and experiences. Both companies have experienced significant growth in recent years, with Booking Holdings owning popular sites such as Booking.com, Priceline, and Kayak, while Tripadvisor is known for its comprehensive reviews and travel planning tools. Investors may be drawn to Booking Holdings for its established market presence, while Tripadvisor's focus on user-generated content could make it a compelling option for those looking for a unique investment opportunity.

Booking or Tripadvisor?

When comparing Booking and Tripadvisor, 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 Tripadvisor.

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 Tripadvisor 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, Tripadvisor 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 33.00 and Tripadvisor's P/E ratio at 21.53. 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 -45.49 while Tripadvisor's P/B ratio is 2.05.

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 Tripadvisor's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Tripadvisor's ROE at 10.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4932.50 for Booking and $13.90 for Tripadvisor. Over the past year, Booking's prices ranged from $3079.50 to $5069.44, with a yearly change of 64.62%. Tripadvisor's prices fluctuated between $12.93 and $28.76, with a yearly change of 122.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.