Trip.com vs Airbnb Which Is More Promising?

Trip.com Group Limited and Airbnb, Inc. are two major players in the global travel industry, offering a wide range of services to travelers around the world. Both companies operate in the online marketplace, connecting hosts and travelers for accommodation, experiences, and other travel-related services. Trip.com is based in China and has established a strong presence in the Asian market, while Airbnb is a US-based company with a strong global brand reputation. Both companies have seen growth in their stock prices in recent years, but their business models and growth strategies differ.

Trip.com or Airbnb?

When comparing Trip.com and Airbnb, 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 Trip.com and Airbnb.

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. Trip.com has a dividend yield of -%, while Airbnb has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Trip.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Airbnb 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 Trip.com P/E ratio at 21.56 and Airbnb's P/E ratio at 47.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Trip.com P/B ratio is 2.51 while Airbnb's P/B ratio is 10.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Trip.com has seen a 5-year revenue growth of 0.17%, while Airbnb's is 1.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Trip.com's ROE at 12.48% and Airbnb's ROE at 22.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $71.58 for Trip.com and $136.62 for Airbnb. Over the past year, Trip.com's prices ranged from $33.14 to $77.18, with a yearly change of 132.89%. Airbnb's prices fluctuated between $110.38 and $170.10, with a yearly change of 54.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.