Tripadvisor vs Yelp

Tripadvisor and Yelp are two popular platforms that provide reviews and recommendations for restaurants, hotels, and other businesses. Both companies rely heavily on user-generated content to drive traffic and revenue. However, their stock performance has seen significant differences in recent years. While Tripadvisor has struggled to maintain growth and profitability, Yelp has shown more stability and potential for growth. Investors looking to capitalize on the online review industry should carefully consider the strengths and weaknesses of each company before making investment decisions.

Tripadvisor or Yelp?

When comparing Tripadvisor and Yelp, 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 Yelp.

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 Yelp 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, Yelp 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 86.85 and Yelp's P/E ratio at 17.17. 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 2.43 while Yelp's P/B ratio is 3.22.

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 Yelp's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tripadvisor's ROE at 2.84% and Yelp's ROE at 18.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.66 for Tripadvisor and $34.27 for Yelp. Over the past year, Tripadvisor's prices ranged from $12.93 to $28.76, with a yearly change of 122.43%. Yelp's prices fluctuated between $32.56 and $48.99, with a yearly change of 50.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.