UNITED vs Expedia Which Performs Better?

United and Expedia are two major players in the travel industry, each offering unique opportunities for investors. United Airlines, a leading airline company, has faced challenges in the wake of the COVID-19 pandemic but has shown resilience in adapting to changing market conditions. Expedia, a popular online travel booking platform, has also navigated the pandemic with innovative strategies to attract travelers. Both stocks present opportunities for investors looking to capitalize on the recovery of the travel industry.

UNITED or Expedia?

When comparing UNITED 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 UNITED 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. UNITED has a dividend yield of 4.77%, while Expedia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% 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 UNITED P/E ratio at 49.19 and Expedia's P/E ratio at 22.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.34 while Expedia's P/B ratio is 18.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥763.00 for UNITED and $180.02 for Expedia. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. 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.