Overstock.com vs Expedia Which Is a Better Investment?

Overstock.com and Expedia are two well-known companies in the e-commerce and travel industries, respectively. Overstock.com, founded in 1999, is an online retailer that offers a wide range of products at discounted prices. Expedia, founded in 1995, is a popular online travel booking platform that provides access to flights, hotels, car rentals, and more. Both companies have seen fluctuations in their stock prices over the years, with investors closely monitoring their performance in the dynamic market.

Overstock.com or Expedia?

When comparing Overstock.com and Expedia, 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 Overstock.com and Expedia.

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. Overstock.com has a dividend yield of -%, while Expedia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Overstock.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Expedia 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 Overstock.com P/E ratio at -0.77 and Expedia's P/E ratio at 22.91. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Overstock.com P/B ratio is 1.33 while Expedia's P/B ratio is 18.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Overstock.com has seen a 5-year revenue growth of -0.43%, while Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.63 for Overstock.com and $187.71 for Expedia. Over the past year, Overstock.com's prices ranged from $5.63 to $39.18, with a yearly change of 595.87%. Expedia's prices fluctuated between $107.25 and $192.34, with a yearly change of 79.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.