Head to Head Contrast: Tripadvisor (TRIP) & Its Peers

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

Volatility and Risk

Tripadvisor has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500. Comparatively, Tripadvisor’s competitors have a beta of 1.19, suggesting that their average share price is 19% more volatile than the S&P 500.

Institutional and Insider Ownership

88.8% of Tripadvisor shares are held by institutional investors. Comparatively, 75.3% of shares of all “Travel Agents” companies are held by institutional investors. 1.1% of Tripadvisor shares are held by company insiders. Comparatively, 14.5% of shares of all “Travel Agents” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Tripadvisor and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tripadvisor 6 17 0 0 1.74
Tripadvisor Competitors 88 652 966 43 2.55

Tripadvisor currently has a consensus target price of $39.71, suggesting a potential upside of 15.26%. As a group, “Travel Agents” companies have a potential upside of 19.03%. Given Tripadvisor’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Tripadvisor has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Tripadvisor and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tripadvisor $1.48 billion $120.00 million 73.30
Tripadvisor Competitors $3.16 billion $214.58 million 13.45

Tripadvisor’s competitors have higher revenue and earnings than Tripadvisor. Tripadvisor is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Tripadvisor and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tripadvisor 4.26% 6.81% 4.13%
Tripadvisor Competitors -18.70% -60.07% -9.98%

Summary

Tripadvisor competitors beat Tripadvisor on 7 of the 13 factors compared.

About Tripadvisor

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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