Yatra Online (NASDAQ: YTRA) and Despegar.com (NYSE:DESP) are both small-cap cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Yatra Online and Despegar.com’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Yatra Online $144.39 million 1.51 -$91.18 million ($4.71) -1.94
Despegar.com $411.16 million 4.41 $17.79 million N/A N/A

Despegar.com has higher revenue and earnings than Yatra Online.

Insider & Institutional Ownership

10.2% of Yatra Online shares are held by institutional investors. Comparatively, 14.4% of Despegar.com shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Yatra Online and Despegar.com, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yatra Online 0 0 5 0 3.00
Despegar.com 0 2 3 0 2.60

Yatra Online currently has a consensus price target of $14.56, suggesting a potential upside of 58.95%. Despegar.com has a consensus price target of $35.80, suggesting a potential upside of 32.54%. Given Yatra Online’s stronger consensus rating and higher possible upside, equities analysts plainly believe Yatra Online is more favorable than Despegar.com.

Profitability

This table compares Yatra Online and Despegar.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yatra Online -88.49% -453.63% -62.59%
Despegar.com N/A N/A N/A

Summary

Despegar.com beats Yatra Online on 7 of the 10 factors compared between the two stocks.

Yatra Online Company Profile

Yatra Online, Inc. is an India-based consumer travel platform and online travel agent. The Company’s segments include Air Ticketing, Hotels and Packages, and Others. Through Internet and mobile-based platform and call-centers, the Company provides the facility to book and service international and domestic air tickets to customer through business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C) channel. Through an Internet and mobile-based platform, call-centers and branch offices, the Company provides holiday packages and hotel reservations. The Other segment includes the advertisement income from hosting advertisements on its Internet Websites, income from sale of rail and bus tickets, and income from facilitating Website access to travel insurance companies. It offers multiple mobile applications for a range of consumer segments and services, including Yatra, Yatra Mini, Yatra Web Check-In, Yatra Corporate, Travelguru HomeStay and Yatra Hoteliers DESTranet.

Despegar.com Company Profile

Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.

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