Booking vs trivago Which Offers More Value?

Booking Holdings and Trivago are two of the biggest players in the online travel booking industry, with both companies offering a variety of services to help travelers find the best deals on hotels, flights, and rental cars. While Booking Holdings operates several popular booking websites such as Booking.com and Priceline, Trivago focuses on comparing prices from different travel sites to help users find the best deal. Investors may be interested in comparing the stocks of these two companies to determine which is the better investment option.

Booking or trivago?

When comparing Booking and trivago, 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 trivago.

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 0.66%, while trivago 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, trivago reports a 5-year dividend growth of 0.00% year and a payout ratio of -686.38%.

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 35.11 and trivago's P/E ratio at -5.81. 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 -48.40 while trivago's P/B ratio is 0.80.

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 trivago's is 1.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and trivago's ROE at -12.89%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5218.78 for Booking and $2.31 for trivago. Over the past year, Booking's prices ranged from $3180.00 to $5337.20, with a yearly change of 67.84%. trivago's prices fluctuated between $1.60 and $3.29, with a yearly change of 105.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.