Expedia vs Hostelworld Which Is More Profitable?

Expedia Group and Hostelworld Group are both prominent players in the online travel industry, but they cater to different market segments. Expedia focuses on providing a wide range of accommodation options, including hotels, while Hostelworld specializes in budget accommodations like hostels. Both companies have seen fluctuations in their stock prices in recent years due to changing consumer preferences and market conditions. Investors looking to capitalize on the travel industry may consider analyzing the financial performance and growth potential of Expedia and Hostelworld stocks.

Expedia or Hostelworld?

When comparing Expedia and Hostelworld, 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 Hostelworld.

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 Hostelworld 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, Hostelworld 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 22.25 and Hostelworld's P/E ratio at 14.44. 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 17.96 while Hostelworld's P/B ratio is 3.50.

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 Hostelworld's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and Hostelworld's ROE at 24.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $182.24 for Expedia and €1.70 for Hostelworld. Over the past year, Expedia's prices ranged from $107.25 to $192.34, with a yearly change of 79.34%. Hostelworld's prices fluctuated between €1.48 and €2.00, with a yearly change of 35.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.