Expedia vs Microsoft Which Performs Better?

Expedia and Microsoft are two prominent companies in the technology and travel sectors, each with its unique strengths and challenges. Expedia, a leading online travel booking platform, has seen significant growth in recent years due to the increasing popularity of online travel booking. On the other hand, Microsoft, a global tech giant, has diversified its business to include cloud computing services and software products. Investors may consider factors such as market trends, competitive positioning, and financial performance when evaluating these two stocks.

Expedia or Microsoft?

When comparing Expedia and Microsoft, 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 Microsoft.

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 Microsoft has a dividend yield of 0.69%. 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, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%.

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 23.19 and Microsoft's P/E ratio at 36.43. 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 18.72 while Microsoft's P/B ratio is 11.46.

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 Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $189.48 for Expedia and $441.77 for Microsoft. Over the past year, Expedia's prices ranged from $107.25 to $192.28, with a yearly change of 79.28%. Microsoft's prices fluctuated between $364.13 and $468.35, with a yearly change of 28.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.