Pinterest (NYSE:PINS – Get Free Report) and TripAdvisor (NASDAQ:TRIP – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
Pinterest has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares Pinterest and TripAdvisor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| $4.22 billion | 2.62 | $416.86 million | $0.25 | 79.06 | |
| TripAdvisor | $1.89 billion | 0.46 | $40.00 million | $0.01 | 738.00 |
Pinterest has higher revenue and earnings than TripAdvisor. Pinterest is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
88.8% of Pinterest shares are held by institutional investors. Comparatively, 99.0% of TripAdvisor shares are held by institutional investors. 8.1% of Pinterest shares are held by company insiders. Comparatively, 2.0% of TripAdvisor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Pinterest and TripAdvisor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 1 | 18 | 17 | 1 | 2.49 | |
| TripAdvisor | 5 | 6 | 4 | 0 | 1.93 |
Pinterest currently has a consensus price target of $25.97, suggesting a potential upside of 31.38%. TripAdvisor has a consensus price target of $13.88, suggesting a potential upside of 88.14%. Given TripAdvisor’s higher probable upside, analysts plainly believe TripAdvisor is more favorable than Pinterest.
Profitability
This table compares Pinterest and TripAdvisor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 3.81% | 6.58% | 4.50% | |
| TripAdvisor | 0.28% | 4.23% | 1.04% |
Summary
Pinterest beats TripAdvisor on 12 of the 15 factors compared between the two stocks.
About Pinterest
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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.
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