OYO vs Booking Which Should You Buy?

OYO and Booking are two major players in the hospitality industry, with OYO focusing on budget accommodations and Booking offering a wide range of accommodation options. Both companies have seen significant growth in recent years, but their stocks have performed differently in the market. While OYO has faced some challenges with its business model and regulatory issues, Booking has continued to thrive and has a strong track record of profitability. Investors should carefully consider the risks and prospects of both companies before making investment decisions.

OYO or Booking?

When comparing OYO and Booking, 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 OYO and Booking.

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. OYO has a dividend yield of 2.56%, while Booking has a dividend yield of 0.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. OYO reports a 5-year dividend growth of 15.68% year and a payout ratio of 0.00%. On the other hand, Booking reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.57%.

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 OYO P/E ratio at 11.97 and Booking's P/E ratio at 33.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. OYO P/B ratio is 0.74 while Booking's P/B ratio is -45.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, OYO has seen a 5-year revenue growth of 0.58%, while Booking's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OYO's ROE at 6.34% and Booking's ROE at -136.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2400.00 for OYO and $4932.50 for Booking. Over the past year, OYO's prices ranged from ¥1888.00 to ¥2864.00, with a yearly change of 51.69%. Booking's prices fluctuated between $3079.50 and $5069.44, with a yearly change of 64.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.