Financial Survey: Auto Trader Group (OTCMKTS:ATDRY) vs. Expedia Group (NASDAQ:EXPE)

Auto Trader Group (OTCMKTS:ATDRY) and Expedia Group (NASDAQ:EXPE) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares Auto Trader Group and Expedia Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Auto Trader Group	N/A	N/A	N/A
Expedia Group	9.81%	84.33%	7.42%

Dividends

Auto Trader Group pays an annual dividend of $0.04 per share and has a dividend yield of 2.8%. Expedia Group pays an annual dividend of $1.92 per share and has a dividend yield of 0.9%. Expedia Group pays out 16.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Auto Trader Group and Expedia Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auto Trader Group	$766.77 million	6.16	$360.57 million	N/A	N/A
Expedia Group	$14.73 billion	1.88	$1.29 billion	$11.36	19.88

Expedia Group has higher revenue and earnings than Auto Trader Group.

Risk and Volatility

Auto Trader Group has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Auto Trader Group shares are held by institutional investors. Comparatively, 90.8% of Expedia Group shares are held by institutional investors. 5.2% of Expedia Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Auto Trader Group and Expedia Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auto Trader Group	1	3	0	0	1.75
Expedia Group	0	23	16	0	2.41

Expedia Group has a consensus price target of $284.42, suggesting a potential upside of 25.97%. Given Expedia Group’s stronger consensus rating and higher possible upside, analysts plainly believe Expedia Group is more favorable than Auto Trader Group.

Summary

Expedia Group beats Auto Trader Group on 11 of the 14 factors compared between the two stocks.

About Auto Trader Group

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.