Tripadvisor (NASDAQ:TRIP – Get Free Report) and Trade Desk (NASDAQ:TTD – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.
Valuation & Earnings
This table compares Tripadvisor and Trade Desk”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tripadvisor | $1.79 billion | 1.07 | $10.00 million | $0.23 | 59.96 |
Trade Desk | $2.31 billion | 24.96 | $178.94 million | $0.61 | 192.23 |
Trade Desk has higher revenue and earnings than Tripadvisor. Tripadvisor is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Tripadvisor | 1.98% | 10.37% | 3.36% |
Trade Desk | 13.34% | 13.17% | 6.10% |
Institutional and Insider Ownership
99.0% of Tripadvisor shares are owned by institutional investors. Comparatively, 67.8% of Trade Desk shares are owned by institutional investors. 2.2% of Tripadvisor shares are owned by company insiders. Comparatively, 9.7% of Trade Desk shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Tripadvisor and Trade Desk, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tripadvisor | 3 | 9 | 3 | 0 | 2.00 |
Trade Desk | 2 | 3 | 24 | 1 | 2.80 |
Tripadvisor presently has a consensus target price of $18.33, indicating a potential upside of 32.95%. Trade Desk has a consensus target price of $122.65, indicating a potential upside of 4.60%. Given Tripadvisor’s higher probable upside, equities research analysts plainly believe Tripadvisor is more favorable than Trade Desk.
Volatility & Risk
Tripadvisor has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
Summary
Trade Desk beats Tripadvisor on 13 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 Trade Desk
The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.
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