Expedia (NASDAQ: EXPE) and Ctrip.com International (NASDAQ:CTRP) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Dividends

Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. Ctrip.com International does not pay a dividend. Expedia pays out 56.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Expedia and Ctrip.com International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Expedia $9.45 billion 2.27 $1.19 billion $2.11 67.02
Ctrip.com International $3.16 billion 8.47 $222.99 million $0.29 177.73

Expedia has higher revenue and earnings than Ctrip.com International. Expedia is trading at a lower price-to-earnings ratio than Ctrip.com International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

84.4% of Expedia shares are owned by institutional investors. Comparatively, 67.6% of Ctrip.com International shares are owned by institutional investors. 21.0% of Expedia shares are owned by insiders. Comparatively, 5.0% of Ctrip.com International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Expedia and Ctrip.com International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia 0 4 21 1 2.88
Ctrip.com International 0 2 11 0 2.85

Expedia currently has a consensus target price of $162.96, indicating a potential upside of 15.24%. Ctrip.com International has a consensus target price of $57.50, indicating a potential upside of 11.56%. Given Expedia’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Expedia is more favorable than Ctrip.com International.

Risk and Volatility

Expedia has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Ctrip.com International has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Expedia and Ctrip.com International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Expedia 3.49% 10.98% 3.40%
Ctrip.com International 4.56% 1.41% 0.74%

Summary

Expedia beats Ctrip.com International on 12 of the 17 factors compared between the two stocks.

Expedia Company Profile

Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.

Ctrip.com International Company Profile

Ctrip.com International, Ltd. (Ctrip) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers’ reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours and private tours or packaged tours with different transportation arrangements, such as cruise, bus or self-driving.

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