Critical Review: Online Vacation Center (ONVC) versus Its Peers

Valuation & Earnings

This table compares Online Vacation Center and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Online Vacation Center	$20.10 million	$750,000.00	21.60
Online Vacation Center Competitors	$28.20 billion	$2.17 billion	21.92

Online Vacation Center’s peers have higher revenue and earnings than Online Vacation Center. Online Vacation Center is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Online Vacation Center has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Online Vacation Center’s peers have a beta of 1.50, indicating that their average stock price is 50% more volatile than the S&P 500.

Profitability

This table compares Online Vacation Center and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Online Vacation Center	3.71%	N/A	N/A
Online Vacation Center Competitors	-13.42%	-27.91%	-5.39%

Insider and Institutional Ownership

50.1% of shares of all “INTERNET COMMERCE” companies are held by institutional investors. 71.3% of Online Vacation Center shares are held by insiders. Comparatively, 19.4% of shares of all “INTERNET COMMERCE” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Online Vacation Center beats its peers on 5 of the 9 factors compared.

Online Vacation Center Company Profile

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.