Expedia vs United Airlines Which Is Stronger?

Expedia and United Airlines are two prominent companies in the travel industry, each offering unique investment opportunities for those looking to capitalize on the recovering travel sector. Expedia, a leading online travel agency, has benefited from the increased demand for travel services as restrictions ease. On the other hand, United Airlines has faced challenges due to the impact of the pandemic on air travel. Investors may weigh factors such as financial performance, industry trends, and competitive advantages when choosing between Expedia and United Airlines stocks.

Expedia or United Airlines?

When comparing Expedia and United Airlines, 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 Airlines.

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 Airlines 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, United Airlines 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 23.19 and United Airlines's P/E ratio at 11.94. 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 Airlines's P/B ratio is 2.88.

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 Airlines's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $189.48 for Expedia and $100.05 for United Airlines. Over the past year, Expedia's prices ranged from $107.25 to $192.28, with a yearly change of 79.28%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.