Carnival vs Expedia Which Outperforms?

Carnival Corporation and Expedia Group are both prominent players in the travel and tourism industry, but they operate in different sectors. While Carnival is a leading cruise line operator, Expedia is a major online travel agency. Both companies have experienced fluctuations in their stock performance due to various factors such as the global economic climate, travel restrictions, and changes in consumer behavior. Understanding the dynamics of these stocks is essential for investors looking to capitalize on opportunities in the travel industry.

Carnival or Expedia?

When comparing Carnival and Expedia, 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 Carnival and Expedia.

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. Carnival has a dividend yield of -%, while Expedia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carnival reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Expedia 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 Carnival P/E ratio at 20.09 and Expedia's P/E ratio at 23.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carnival P/B ratio is 3.66 while Expedia's P/B ratio is 18.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carnival has seen a 5-year revenue growth of -0.34%, while Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carnival's ROE at 27.41% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €22.39 for Carnival and $189.48 for Expedia. Over the past year, Carnival's prices ranged from €11.28 to €23.50, with a yearly change of 108.33%. Expedia's prices fluctuated between $107.25 and $192.28, with a yearly change of 79.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.