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

Analyst Ratings

This is a breakdown of recent ratings for Booking and Tuniu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Booking 0 16 11 1 2.46
Tuniu 0 0 0 0 N/A

Booking presently has a consensus target price of $2,100.00, indicating a potential upside of 11.70%. Given Booking’s higher probable upside, research analysts clearly believe Booking is more favorable than Tuniu.

Institutional & Insider Ownership

92.5% of Booking shares are held by institutional investors. Comparatively, 14.4% of Tuniu shares are held by institutional investors. 0.3% of Booking shares are held by insiders. Comparatively, 76.1% of Tuniu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Booking has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Tuniu has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Earnings and Valuation

This table compares Booking and Tuniu’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Booking $14.53 billion 5.42 $4.00 billion $92.59 20.30
Tuniu $325.82 million 0.91 -$27.33 million N/A N/A

Booking has higher revenue and earnings than Tuniu.

Profitability

This table compares Booking and Tuniu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Booking 29.05% 67.17% 20.58%
Tuniu -17.41% -5.91% -2.72%

Summary

Booking beats Tuniu on 10 of the 12 factors compared between the two stocks.

Booking Company Profile

Booking Holdings Inc, formerly 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).

Tuniu Company Profile

Tuniu Corporation operates as an online leisure travel company. The company offers a selection of packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets selling, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services; and advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels comprising the tuniu.com Website; mobile platform; a primary call center in Nanjing; a regional call center in Suqian; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, China.

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