Expedia vs Hyatt Hotels Which Is a Smarter Choice?

Expedia Group and Hyatt Hotels Corporation are two major players in the travel and hospitality industry, each offering unique investment opportunities. Expedia, a leading online travel agency, provides a wide range of booking services for flights, hotels, and vacation packages. On the other hand, Hyatt Hotels operates a portfolio of luxury hotels and resorts worldwide. Both companies have experienced fluctuations in their stock prices due to market conditions and industry trends, making them intriguing options for investors seeking exposure to the travel sector.

Expedia or Hyatt Hotels?

When comparing Expedia and Hyatt Hotels, 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 Hyatt Hotels.

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 Hyatt Hotels has a dividend yield of 0.38%. 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, Hyatt Hotels reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.52%.

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 Hyatt Hotels's P/E ratio at 11.43. 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 Hyatt Hotels's P/B ratio is 4.26.

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 Hyatt Hotels's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and Hyatt Hotels's ROE at 37.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $182.24 for Expedia and $158.00 for Hyatt Hotels. Over the past year, Expedia's prices ranged from $107.25 to $192.34, with a yearly change of 79.34%. Hyatt Hotels's prices fluctuated between $124.40 and $168.20, with a yearly change of 35.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.