Financial Review: Angie’s List (ANGI) vs. Liberty TripAdvisor Holdings (NASDAQ:LTRPA)

Angie’s List (NASDAQ: ANGI) and Liberty TripAdvisor Holdings (NASDAQ:LTRPA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Angie’s List and Liberty TripAdvisor Holdings’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Angie’s List	$312.61 million	2.39	$11.14 million	($0.23)	-54.30
Liberty TripAdvisor Holdings	$1.55 billion	0.56	$238.00 million	$0.39	31.15

Liberty TripAdvisor Holdings has higher revenue and earnings than Angie’s List. Angie’s List is trading at a lower price-to-earnings ratio than Liberty TripAdvisor Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Angie’s List and Liberty TripAdvisor Holdings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angie’s List	-4.62%	-392.52%	-8.71%
Liberty TripAdvisor Holdings	1.87%	0.54%	0.39%

Insider and Institutional Ownership

71.5% of Angie’s List shares are owned by institutional investors. Comparatively, 95.7% of Liberty TripAdvisor Holdings shares are owned by institutional investors. 18.2% of Angie’s List shares are owned by company insiders. Comparatively, 4.0% of Liberty TripAdvisor Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Angie’s List has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Liberty TripAdvisor Holdings has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Angie’s List and Liberty TripAdvisor Holdings, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angie’s List	1	4	1	0	2.00
Liberty TripAdvisor Holdings	0	1	0	0	2.00

Angie’s List presently has a consensus target price of $9.31, indicating a potential downside of 25.44%. Given Angie’s List’s higher possible upside, equities analysts clearly believe Angie’s List is more favorable than Liberty TripAdvisor Holdings.

Summary

Liberty TripAdvisor Holdings beats Angie’s List on 8 of the 12 factors compared between the two stocks.

About Angie’s List

Angie’s List, Inc. operates a national local services consumer review service and marketplace. As of December 31, 2016, the Company helped facilitate transactions between over five million members and its collection of service providers in over 700 categories of service nationwide. Its tools, services and content across multiple platforms enables consumers to research, shop for and purchase local services for needs, as well as rate and review the providers of these services across the United States. Its ratings and reviews assist its members in identifying and hiring the provider for their local service needs. Its services include member services and service provider services. It compiles a breadth of relevant, member-generated ratings and reviews that provide insights, which could otherwise be difficult for consumers to obtain on their own. Its primary source of service provider revenue is term-based sales of advertising to service providers.

About Liberty TripAdvisor Holdings

Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.