Financial Survey: Ctrip.com International (CTRP) vs. Expedia (EXPE)

Ctrip.com International (NASDAQ: CTRP) and Expedia (NASDAQ:EXPE) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Dividends

Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. Ctrip.com International does not pay a dividend. Expedia pays out 56.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Ctrip.com International and Expedia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ctrip.com International 0 2 11 0 2.85
Expedia 0 4 21 1 2.88

Ctrip.com International presently has a consensus target price of $57.50, indicating a potential upside of 11.56%. Expedia has a consensus target price of $162.96, indicating a potential upside of 15.24%. Given Expedia’s stronger consensus rating and higher probable upside, analysts plainly believe Expedia is more favorable than Ctrip.com International.

Earnings & Valuation

This table compares Ctrip.com International and Expedia’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ctrip.com International $3.16 billion 8.47 $222.99 million $0.29 177.73
Expedia $9.45 billion 2.27 $1.19 billion $2.11 67.02

Expedia has higher revenue and earnings than Ctrip.com International. Expedia is trading at a lower price-to-earnings ratio than Ctrip.com International, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.6% of Ctrip.com International shares are owned by institutional investors. Comparatively, 84.4% of Expedia shares are owned by institutional investors. 23.0% of Ctrip.com International shares are owned by insiders. Comparatively, 20.9% of Expedia shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ctrip.com International and Expedia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ctrip.com International 4.56% 1.41% 0.74%
Expedia 3.49% 10.98% 3.40%

Volatility & Risk

Ctrip.com International has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Expedia has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Summary

Expedia beats Ctrip.com International on 11 of the 17 factors compared between the two stocks.

About Ctrip.com International

Ctrip.com International, Ltd. (Ctrip) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers’ reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours and private tours or packaged tours with different transportation arrangements, such as cruise, bus or self-driving.

About Expedia

Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.

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