The Priceline Group (NASDAQ: PCLN) and Ctrip.Com International (NASDAQ:CTRP) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
Institutional and Insider Ownership
94.7% of The Priceline Group shares are owned by institutional investors. Comparatively, 68.4% of Ctrip.Com International shares are owned by institutional investors. 0.2% of The Priceline Group shares are owned by company insiders. Comparatively, 5.0% of Ctrip.Com International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
The Priceline Group has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Ctrip.Com International has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.
This table compares The Priceline Group and Ctrip.Com International’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%|
Earnings & Valuation
This table compares The Priceline Group and Ctrip.Com International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Priceline Group||$10.74 billion||7.81||$2.13 billion||$71.40||24.08|
|Ctrip.Com International||$2.85 billion||7.88||-$206.06 million||$0.60||72.93|
The Priceline Group has higher revenue and earnings than Ctrip.Com International. The Priceline Group is trading at a lower price-to-earnings ratio than Ctrip.Com International, 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 Ctrip.Com International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Priceline Group||0||8||22||0||2.73|
The Priceline Group presently has a consensus price target of $1,999.45, suggesting a potential upside of 16.27%. Ctrip.Com International has a consensus price target of $56.27, suggesting a potential upside of 28.59%. Given Ctrip.Com International’s stronger consensus rating and higher probable upside, analysts clearly believe Ctrip.Com International is more favorable than The Priceline Group.
The Priceline Group beats Ctrip.Com International on 8 of the 14 factors compared between the two stocks.
About The Priceline Group
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).
About Ctrip.Com International
Ctrip.com International, Ltd. (Ctrip) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers’ reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours and private tours or packaged tours with different transportation arrangements, such as cruise, bus or self-driving.
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