Trip.com vs Expedia Which Is a Smarter Choice?

Trip.com and Expedia are two of the biggest players in the online travel booking industry, with both companies experiencing significant growth in recent years. Trip.com, based in China, has a dominant position in the Asian market, while Expedia, based in the US, is a global leader in online travel services. Investors are closely watching both companies as they compete for market share and navigate the challenges posed by the COVID-19 pandemic. The stocks of both Trip.com and Expedia have shown resilience in the face of economic uncertainty, making them compelling choices for investors looking to capitalize on the recovery of the travel industry.

Trip.com or Expedia?

When comparing Trip.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 Trip.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. Trip.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. Trip.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 Trip.com P/E ratio at 20.92 and Expedia's P/E ratio at 21.93. 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 2.26 while Expedia's P/B ratio is 17.70.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Trip.com's ROE at 11.17% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.31 for Trip.com and $179.11 for Expedia. Over the past year, Trip.com's prices ranged from $31.55 to $69.67, with a yearly change of 120.82%. Expedia's prices fluctuated between $107.25 and $190.40, with a yearly change of 77.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.