Expedia vs Carnival Which Should You Buy?

Expedia Group, Inc. and Carnival Corporation are two prominent players in the travel and hospitality industry. Expedia is a leading online travel agency, offering a wide range of services including hotel bookings, flights, and vacation packages. Carnival Corporation, on the other hand, is one of the largest cruise line operators in the world. Both companies have faced challenges in recent years, with Expedia experiencing fluctuations in its stock price due to increased competition and regulatory issues, while Carnival has been impacted by the COVID-19 pandemic. Investors interested in these stocks should carefully consider the unique risks and opportunities associated with each company.

Expedia or Carnival?

When comparing Expedia and Carnival, 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 Expedia and Carnival.

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. Expedia has a dividend yield of -%, while Carnival has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Expedia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Carnival 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 Expedia P/E ratio at 22.42 and Carnival's P/E ratio at 18.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Expedia P/B ratio is 18.09 while Carnival's P/B ratio is 3.40.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Expedia has seen a 5-year revenue growth of 0.18%, while Carnival's is -0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and Carnival's ROE at 27.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $180.02 for Expedia and €20.37 for Carnival. Over the past year, Expedia's prices ranged from $107.25 to $190.40, with a yearly change of 77.53%. Carnival's prices fluctuated between €10.60 and €20.90, with a yearly change of 97.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.