Expedia Group (NASDAQ:EXPE) vs. eBay (NASDAQ:EBAY) Financial Contrast

Expedia Group (NASDAQ:EXPE) and eBay (NASDAQ:EBAY) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Profitability

This table compares Expedia Group and eBay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expedia Group	7.94%	56.25%	5.56%
eBay	20.86%	38.97%	10.37%

Volatility and Risk

Expedia Group has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Institutional and Insider Ownership

90.8% of Expedia Group shares are held by institutional investors. Comparatively, 87.5% of eBay shares are held by institutional investors. 9.1% of Expedia Group shares are held by company insiders. Comparatively, 0.6% of eBay shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Expedia Group and eBay”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expedia Group	$13.69 billion	1.92	$1.23 billion	$8.16	26.01
eBay	$10.28 billion	3.99	$1.98 billion	$4.54	19.80

eBay has lower revenue, but higher earnings than Expedia Group. eBay is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Expedia Group and eBay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expedia Group	1	18	11	3	2.48
eBay	2	20	10	1	2.30

Expedia Group currently has a consensus price target of $205.63, suggesting a potential downside of 3.13%. eBay has a consensus price target of $78.89, suggesting a potential downside of 12.23%. Given Expedia Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Expedia Group is more favorable than eBay.

Dividends

Expedia Group pays an annual dividend of $1.60 per share and has a dividend yield of 0.8%. eBay pays an annual dividend of $1.16 per share and has a dividend yield of 1.3%. Expedia Group pays out 19.6% of its earnings in the form of a dividend. eBay pays out 25.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. eBay has increased its dividend for 7 consecutive years. eBay is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Expedia Group beats eBay on 12 of the 18 factors compared between the two stocks.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.