Trip.com vs Booking Which Is More Favorable?

Trip.com Group Ltd. and Booking Holdings Inc. are two prominent players in the online travel industry, each offering a range of services for travelers worldwide. Both companies have seen fluctuating stock prices in recent years, reflecting the volatile nature of the travel and hospitality sectors. Trip.com, based in China, has a strong presence in the Asian market while Booking, headquartered in the United States, is a global leader in online travel bookings. Investors interested in the travel industry may consider comparing the performance and growth potential of these two companies.

Trip.com or Booking?

When comparing Trip.com 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 Trip.com 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. Trip.com has a dividend yield of -%, while Booking has a dividend yield of 0.67%. 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, 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 Trip.com P/E ratio at 21.80 and Booking's P/E ratio at 34.67. 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 2.54 while Booking's P/B ratio is -47.80.

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 Booking's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Trip.com's ROE at 12.48% and Booking's ROE at -136.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $71.71 for Trip.com and $5216.09 for Booking. Over the past year, Trip.com's prices ranged from $33.34 to $77.18, with a yearly change of 131.49%. Booking's prices fluctuated between $3180.00 and $5337.24, with a yearly change of 67.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.