Orbitz Worldwide (NYSE: OWW) and Expedia (NASDAQ:EXPE) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Valuation and Earnings
This table compares Orbitz Worldwide and Expedia’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Expedia||$9.45 billion||2.31||$1.19 billion||$2.11||68.11|
Expedia has higher revenue and earnings than Orbitz Worldwide.
Institutional & Insider Ownership
81.2% of Expedia shares are held by institutional investors. 21.0% of Expedia shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Orbitz Worldwide and Expedia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Expedia pays an annual dividend of $1.12 per share and has a dividend yield of 0.8%. Orbitz Worldwide does not pay a dividend. Expedia pays out 53.1% of its earnings in the form of a dividend.
This is a summary of recent ratings and target prices for Orbitz Worldwide and Expedia, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Expedia has a consensus price target of $160.48, indicating a potential upside of 11.67%. Given Expedia’s higher probable upside, analysts clearly believe Expedia is more favorable than Orbitz Worldwide.
Expedia beats Orbitz Worldwide on 10 of the 11 factors compared between the two stocks.
Orbitz Worldwide Company Profile
Orbitz Worldwide, Inc. is an online travel company. The Company offers leisure and business travelers to research, plan and book travel products and services, including hotels, flights, vacation packages, car rentals, cruises, travel insurance, destination services and event tickets. The Company’s brand portfolio includes Orbitz and CheapTickets in the United States, ebookers in Europe and HotelClub and RatesToGo (collectively HotelClub) in Asia Pacific region. Orbitz.com offers travel products and services, and mobile applications and solutions for its hotel transactions. CheapTickets is an online travel company. ebookers is a pan-European online travel agency. HotelClub is a hotel booking Website offering members a selection of hotel properties across more than 170 countries. It also owns and operates Orbitz for Business (OFB), a corporate travel management company, and the Orbitz Partner Network (OPN), which delivers private label travel solutions to a range of partners.
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.
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