Tripadvisor vs Booking Which Outperforms?

Tripadvisor and Booking Holdings are two major players in the online travel industry, with both companies offering booking services for hotels, flights, and other travel-related activities. Tripadvisor is known for its user-generated reviews and recommendations, while Booking Holdings operates popular platforms like Booking.com, Priceline, and Kayak. Both stocks have seen fluctuations in recent years, as the travel industry has been greatly impacted by the COVID-19 pandemic. Investors must carefully consider factors such as revenue growth, market share, and future prospects when deciding between Tripadvisor and Booking stocks.

Tripadvisor or Booking?

When comparing Tripadvisor 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 Tripadvisor 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. Tripadvisor has a dividend yield of -%, while Booking has a dividend yield of 0.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tripadvisor 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 Tripadvisor P/E ratio at 21.53 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. Tripadvisor P/B ratio is 2.05 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, Tripadvisor has seen a 5-year revenue growth of 0.10%, while Booking's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tripadvisor's ROE at 10.29% and Booking's ROE at -136.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.90 for Tripadvisor and $4932.50 for Booking. Over the past year, Tripadvisor's prices ranged from $12.93 to $28.76, with a yearly change of 122.43%. 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.