TripAdvisor (TRIP) & Its Competitors Head-To-Head Contrast

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

Profitability

This table compares TripAdvisor and its peers’ 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 -18.33% -5,188.00% -11.47%

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
TripAdvisor $1.48 billion $120.00 million 64.96
TripAdvisor Competitors $3.16 billion $214.58 million 9.49

TripAdvisor’s peers have higher revenue and earnings than TripAdvisor. TripAdvisor 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.

Risk & Volatility

TripAdvisor has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, TripAdvisor’s peers have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

87.4% of TripAdvisor shares are held by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are held by institutional investors. 1.1% of TripAdvisor shares are held by company insiders. Comparatively, 17.5% of shares of all “Travel Agents” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TripAdvisor and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TripAdvisor 6 17 0 0 1.74
TripAdvisor Competitors 87 643 965 43 2.55

TripAdvisor presently has a consensus price target of $39.82, suggesting a potential upside of 30.44%. As a group, “Travel Agents” companies have a potential upside of 18.84%. Given TripAdvisor’s higher possible upside, analysts clearly believe TripAdvisor is more favorable than its peers.

Summary

TripAdvisor beats its peers 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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