Financial Review: The Priceline Group (PCLN) and Despegar.com (DESP)
The Priceline Group (NASDAQ: PCLN) and Despegar.com (NYSE:DESP) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Valuation and Earnings
This table compares The Priceline Group and Despegar.com’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Priceline Group||$10.74 billion||7.82||$2.13 billion||$71.40||24.14|
|Despegar.com||$411.16 million||3.74||$17.79 million||$0.53||43.17|
The Priceline Group has higher revenue and earnings than Despegar.com. The Priceline Group is trading at a lower price-to-earnings ratio than Despegar.com, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for The Priceline Group and Despegar.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Priceline Group||0||7||23||0||2.77|
The Priceline Group presently has a consensus price target of $2,012.85, indicating a potential upside of 16.81%. Despegar.com has a consensus price target of $35.80, indicating a potential upside of 56.47%. Given Despegar.com’s higher probable upside, analysts clearly believe Despegar.com is more favorable than The Priceline Group.
Insider & Institutional Ownership
94.7% of The Priceline Group shares are held by institutional investors. Comparatively, 72.6% of Despegar.com shares are held by institutional investors. 0.2% of The Priceline Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares The Priceline Group and Despegar.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Priceline Group||29.20%||33.02%||16.35%|
The Priceline Group beats Despegar.com on 11 of the 12 factors compared between the two stocks.
The Priceline Group Company Profile
The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).
Despegar.com Company Profile
Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.
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