Reviewing TripAdvisor (TRIP) and Despegar.com Corp. (DESP)

TripAdvisor (NASDAQ: TRIP) and Despegar.com Corp. (NYSE:DESP) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

87.4% of TripAdvisor shares are owned by institutional investors. Comparatively, 14.4% of Despegar.com Corp. shares are owned by institutional investors. 1.1% of TripAdvisor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares TripAdvisor and Despegar.com Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TripAdvisor 4.26% 6.81% 4.13%
Despegar.com Corp. N/A N/A N/A

Valuation & Earnings

This table compares TripAdvisor and Despegar.com Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
TripAdvisor $1.48 billion 2.87 $120.00 million $0.47 65.09
Despegar.com Corp. $411.16 million 4.66 $17.79 million N/A N/A

TripAdvisor has higher revenue and earnings than Despegar.com Corp..

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for TripAdvisor and Despegar.com Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TripAdvisor 6 17 0 0 1.74
Despegar.com Corp. 0 2 3 0 2.60

TripAdvisor presently has a consensus price target of $39.82, suggesting a potential upside of 30.18%. Despegar.com Corp. has a consensus price target of $35.80, suggesting a potential upside of 25.61%. Given TripAdvisor’s higher possible upside, analysts plainly believe TripAdvisor is more favorable than Despegar.com Corp..

Summary

TripAdvisor beats Despegar.com Corp. on 8 of the 11 factors compared between the two stocks.

TripAdvisor Company Profile

TripAdvisor, Inc. owns and operates a portfolio of online travel brands. TripAdvisor, the Company’s brand, is a travel site. The Company operates through two segments: Hotel and Non-Hotel. The Company’s Hotel segment includes click-based advertising and transaction; display-based and subscription-based advertising, and other hotel operations. The Non-Hotel segment includes Attractions, Restaurants and Vacation Rentals businesses. The Company’s platform also enables users to compare real-time pricing and availability for these experiences, as well as to book hotels, flights, cruises, vacation rentals, tours, activities and attractions, and restaurants, on either a TripAdvisor site or application, or a travel partner site or application. As of December 31, 2016, the Company’s TripAdvisor-branded Websites included tripadvisor.com in the United States and localized versions of the TripAdvisor Website in 48 markets and 28 languages around the world.

Despegar.com Corp. Company Profile

Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.

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