Yelp vs Tripadvisor Which Performs Better?

Yelp and Tripadvisor are two popular online platforms that provide consumers with reviews and information about restaurants, hotels, and other businesses. Both companies operate as online marketplaces, allowing users to share their experiences and opinions with a global audience. While Yelp focuses more on local businesses and services, Tripadvisor specializes in travel-related reviews. Investors often compare the stocks of these two companies, looking at factors such as revenue growth, user engagement, and market performance to determine which may be a better investment opportunity.

Yelp or Tripadvisor?

When comparing Yelp and Tripadvisor, 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 Yelp and Tripadvisor.

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. Yelp has a dividend yield of -%, while Tripadvisor has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Yelp reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Tripadvisor 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 Yelp P/E ratio at 21.59 and Tripadvisor's P/E ratio at 22.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Yelp P/B ratio is 3.45 while Tripadvisor's P/B ratio is 2.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Yelp has seen a 5-year revenue growth of 0.82%, while Tripadvisor's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yelp's ROE at 16.02% and Tripadvisor's ROE at 10.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.89 for Yelp and $14.76 for Tripadvisor. Over the past year, Yelp's prices ranged from $32.56 to $48.99, with a yearly change of 50.46%. Tripadvisor's prices fluctuated between $12.93 and $28.76, with a yearly change of 122.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.