Tripadvisor vs Expedia Which Is More Favorable?

Tripadvisor and Expedia are two major players in the online travel booking industry. Both companies offer a range of services, including hotel and flight booking, vacation rentals, and travel guides. However, their stock performance has differed in recent years. While Expedia has seen consistent growth and profitability, Tripadvisor has faced challenges, leading to fluctuations in its stock price. Investors are closely watching these companies as they navigate the competitive landscape of the travel industry.

Tripadvisor or Expedia?

When comparing Tripadvisor 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 Tripadvisor 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. Tripadvisor 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. Tripadvisor 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 Tripadvisor P/E ratio at 21.27 and Expedia's P/E ratio at 22.25. 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 2.03 while Expedia's P/B ratio is 17.96.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tripadvisor's ROE at 10.29% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.49 for Tripadvisor and $182.24 for Expedia. Over the past year, Tripadvisor's prices ranged from $12.93 to $28.76, with a yearly change of 122.43%. Expedia's prices fluctuated between $107.25 and $192.34, with a yearly change of 79.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.