TripAdvisor (NASDAQ:TRIP – Get Free Report) and eBay (NASDAQ:EBAY – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Insider and Institutional Ownership
99.0% of TripAdvisor shares are owned by institutional investors. Comparatively, 87.5% of eBay shares are owned by institutional investors. 3.1% of TripAdvisor shares are owned by insiders. Comparatively, 0.6% of eBay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for TripAdvisor and eBay, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TripAdvisor | 2 | 8 | 0 | 0 | 1.80 |
| eBay | 2 | 20 | 11 | 1 | 2.32 |
Volatility & Risk
TripAdvisor has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares TripAdvisor and eBay”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TripAdvisor | $1.87 billion | 1.06 | $5.00 million | $0.48 | 35.52 |
| eBay | $10.28 billion | 4.05 | $1.98 billion | $4.54 | 20.08 |
eBay has higher revenue and earnings than TripAdvisor. eBay is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TripAdvisor and eBay’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TripAdvisor | 3.53% | 12.40% | 3.59% |
| eBay | 20.86% | 38.97% | 10.37% |
Summary
eBay beats TripAdvisor on 11 of the 15 factors compared between the two stocks.
About TripAdvisor
TripAdvisor, Inc. operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Viator's segment provides pure-play experiences online travel agency that comprehensive and connecting travelers to discover and book tours, activities, and attractions from experience operators. TheFork segment provides an online marketplace that enables diners to discover and book online reservations at restaurants. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. Tripadvisor, Inc. is a subsidiary of Liberty TripAdvisor Holdings, Inc.
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.
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