Analyzing Expedia Group (EXPE) and Its Peers

Expedia Group (NASDAQ:EXPE – Get Free Report) is one of 383 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare Expedia Group to similar businesses based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, risk and institutional ownership.

Dividends

Expedia Group pays an annual dividend of $1.92 per share and has a dividend yield of 0.7%. Expedia Group pays out 11.2% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 39.0% of their earnings in the form of a dividend.

Profitability

This table compares Expedia Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Expedia Group 12.98% 91.03% 8.33%
Expedia Group Competitors 8.51% -42.00% 2.07%

Insider & Institutional Ownership

90.8% of Expedia Group shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 5.2% of Expedia Group shares are held by insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Expedia Group has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Expedia Group’s peers have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.

Earnings and Valuation

This table compares Expedia Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Expedia Group $14.73 billion $1.29 billion 15.17
Expedia Group Competitors $3.64 billion $250.18 million -161.57

Expedia Group has higher revenue and earnings than its peers. Expedia Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Expedia Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia Group 2 19 15 0 2.36
Expedia Group Competitors 3829 17314 25636 908 2.50

Expedia Group presently has a consensus price target of $316.00, suggesting a potential upside of 21.64%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.61%. Given Expedia Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Expedia Group has less favorable growth aspects than its peers.

Summary

Expedia Group beats its peers on 8 of the 15 factors compared.

About Expedia Group

(Get Free Report)

Expedia Group, Inc. is an online travel company that connects travelers with lodging, flights, rental cars, cruises, vacation packages and activities. Its consumer-facing brands include Expedia, Hotels.com and Vrbo, which specializes in vacation rentals. The company also provides travel technology and booking services to business partners. Founded in 1996 as a division of Microsoft, Expedia became an independent public company in 1999. It serves travelers and lodging partners in markets around the world through its websites and mobile apps.

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