Expedia vs UNITED Which Offers More Value?

Expedia Group and United Airlines Holdings are two prominent companies in the travel and tourism industry, each offering unique investment opportunities for investors. Expedia Group is a leading online travel company that operates various brands, while United Airlines is one of the largest airlines in the world. Both companies have faced challenges due to the COVID-19 pandemic, but have shown resilience and adaptability in navigating the changing market conditions. Investors looking to diversify their portfolio in the travel sector may find value in considering stocks from both Expedia and United.

Expedia or UNITED?

When comparing Expedia and UNITED, 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 UNITED.

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 UNITED has a dividend yield of 3.06%. 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, UNITED reports a 5-year dividend growth of 6.43% 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 23.19 and UNITED's P/E ratio at 50.41. 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 UNITED's P/B ratio is 1.38.

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 UNITED's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and UNITED's ROE at 2.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $189.48 for Expedia and ¥776.00 for UNITED. Over the past year, Expedia's prices ranged from $107.25 to $192.28, with a yearly change of 79.28%. UNITED's prices fluctuated between ¥670.00 and ¥953.00, with a yearly change of 42.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.