Comparing Online Vacation Center (OTCMKTS:ONVC) and TripAdvisor (NASDAQ:TRIP)

TripAdvisor (NASDAQ:TRIP) and Online Vacation Center (OTCMKTS:ONVC) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for TripAdvisor and Online Vacation Center, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TripAdvisor	5	8	2	1	1.94
Online Vacation Center	0	0	0	0	0.00

TripAdvisor presently has a consensus price target of $15.21, indicating a potential upside of 58.29%. Given TripAdvisor’s stronger consensus rating and higher possible upside, research analysts clearly believe TripAdvisor is more favorable than Online Vacation Center.

Profitability

This table compares TripAdvisor and Online Vacation Center’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TripAdvisor	2.12%	10.67%	2.52%
Online Vacation Center	3.00%	N/A	N/A

Institutional and Insider Ownership

99.0% of TripAdvisor shares are held by institutional investors. 3.1% of TripAdvisor shares are held by company insiders. Comparatively, 71.3% of Online Vacation Center shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares TripAdvisor and Online Vacation Center”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TripAdvisor	$1.89 billion	0.59	$5.00 million	$0.30	32.03
Online Vacation Center	$20.10 million	0.88	$750,000.00	$0.08	31.25

TripAdvisor has higher revenue and earnings than Online Vacation Center. Online Vacation Center is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

TripAdvisor has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Online Vacation Center has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Summary

TripAdvisor beats Online Vacation Center 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 Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.