Contrasting The Priceline Group (PCLN) and The Competition

The Priceline Group (NASDAQ: PCLN) is one of 11 publicly-traded companies in the “Travel Agents” industry, but how does it weigh in compared to its peers? We will compare The Priceline Group to related companies based on the strength of its risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

95.1% of The Priceline Group shares are owned by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are owned by institutional investors. 0.2% of The Priceline Group shares are owned by company insiders. Comparatively, 14.5% of shares of all “Travel Agents” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

The Priceline Group has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, The Priceline Group’s peers have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for The Priceline Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Priceline Group 0 5 23 0 2.82
The Priceline Group Competitors 87 644 965 43 2.55

The Priceline Group presently has a consensus target price of $2,022.96, suggesting a potential upside of 15.74%. As a group, “Travel Agents” companies have a potential upside of 29.62%. Given The Priceline Group’s peers higher possible upside, analysts clearly believe The Priceline Group has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares The Priceline Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
The Priceline Group $10.74 billion $2.13 billion 24.49
The Priceline Group Competitors $3.16 billion $214.58 million 12.04

The Priceline Group has higher revenue and earnings than its peers. The Priceline Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares The Priceline Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Priceline Group 29.20% 33.02% 16.35%
The Priceline Group Competitors -18.10% -61.25% -10.57%

Summary

The Priceline Group beats its peers on 10 of the 13 factors compared.

About The Priceline Group

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

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