Despegar.com Corp. (NYSE: DESP) and TripAdvisor (NASDAQ:TRIP) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Earnings and Valuation
This table compares Despegar.com Corp. and TripAdvisor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Despegar.com Corp.||$411.16 million||4.66||$17.79 million||N/A||N/A|
|TripAdvisor||$1.48 billion||2.87||$120.00 million||$0.47||65.09|
Institutional & Insider Ownership
14.4% of Despegar.com Corp. shares are owned by institutional investors. Comparatively, 90.3% of TripAdvisor shares are owned by institutional investors. 1.1% of TripAdvisor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current recommendations for Despegar.com Corp. and TripAdvisor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Despegar.com Corp. presently has a consensus target price of $35.80, suggesting a potential upside of 25.61%. TripAdvisor has a consensus target price of $39.82, suggesting a potential upside of 30.18%. Given TripAdvisor’s higher possible upside, analysts plainly believe TripAdvisor is more favorable than Despegar.com Corp..
This table compares Despegar.com Corp. and TripAdvisor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TripAdvisor beats Despegar.com Corp. on 8 of the 11 factors compared between the two stocks.
About Despegar.com Corp.
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.
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.
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