Head-To-Head Comparison: Trip.com Group (NASDAQ:TCOM) and Meridian (NASDAQ:MRDN)

Trip.com Group (NASDAQ:TCOM) and Meridian (NASDAQ:MRDN) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Risk & Volatility

Trip.com Group has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500. Comparatively, Meridian has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

35.4% of Trip.com Group shares are held by institutional investors. Comparatively, 2.7% of Meridian shares are held by institutional investors. 23.0% of Trip.com Group shares are held by insiders. Comparatively, 9.4% of Meridian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Trip.com Group and Meridian”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trip.com Group	$8.94 billion	2.83	$4.77 billion	$4.85	8.02
Meridian	$182.86 million	0.77	-$89.90 million	($6.74)	-1.65

Trip.com Group has higher revenue and earnings than Meridian. Meridian is trading at a lower price-to-earnings ratio than Trip.com Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Trip.com Group and Meridian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trip.com Group	2	3	8	1	2.57
Meridian	1	0	0	0	1.00

Trip.com Group presently has a consensus target price of $60.45, suggesting a potential upside of 55.41%. Meridian has a consensus target price of $21.60, suggesting a potential upside of 94.77%. Given Meridian’s higher probable upside, analysts plainly believe Meridian is more favorable than Trip.com Group.

Profitability

This table compares Trip.com Group and Meridian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trip.com Group	36.07%	16.99%	10.73%
Meridian	-41.41%	-117.87%	-58.87%

Summary

Trip.com Group beats Meridian on 13 of the 15 factors compared between the two stocks.

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

About Meridian

Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region. The RKings & CFAC segment is involved in pay-to-enter prize competitions and trade promotions conducted in the United Kingdom and Australia. It generates the majority of its revenue from the MeridianBet Group segment.