Expedia (NASDAQ: EXPE) and Tuniu Corporation (NASDAQ:TOUR) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Expedia and Tuniu Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Expedia $9.45 billion 2.34 $1.19 billion $2.11 69.09
Tuniu Corporation $1.06 billion 0.69 -$243.11 million ($1.96) -3.98

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

Analyst Ratings

This is a summary of current ratings and price targets for Expedia and Tuniu Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia 0 4 21 1 2.88
Tuniu Corporation 0 0 2 0 3.00

Expedia presently has a consensus target price of $162.96, indicating a potential upside of 11.79%. Tuniu Corporation has a consensus target price of $11.60, indicating a potential upside of 48.72%. Given Tuniu Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Tuniu Corporation is more favorable than Expedia.

Dividends

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

Profitability

This table compares Expedia and Tuniu Corporation’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%
Tuniu Corporation -23.64% -34.20% -17.07%

Institutional & Insider Ownership

84.4% of Expedia shares are held by institutional investors. 20.9% of Expedia shares are held by insiders. Comparatively, 76.1% of Tuniu Corporation shares 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.

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, Tuniu Corporation has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Summary

Expedia beats Tuniu Corporation on 11 of the 16 factors compared between the two stocks.

About Expedia

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.

About Tuniu Corporation

Tuniu Corporation is an online leisure travel company. The Company offers a selection of packaged tours, including organized tours and self-guided tours, as well as travel-related services for leisure travelers. Its online platform, which consists of its tuniu.com Website and mobile platform, provides product and travel information to enable leisure travelers to plan their travels. Its organized tours offer pre-arranged itineraries, transportation, accommodations, entertainment, meals and tour guide services. Its self-guided tours consist of combinations of flights and hotel bookings and other optional add-ons, such as airport pick-ups. Its other travel-related services include sales of tourist attraction tickets, visa processing services, financial services, hotel booking services and air ticketing services. Its online platform contains travel guides featuring photos, information and recommendations for all destinations it covers.

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