Expedia (NASDAQ: EXPE) and Orbitz Worldwide (NYSE:OWW) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Dividends
Expedia pays an annual dividend of $1.12 per share and has a dividend yield of 0.8%. Orbitz Worldwide does not pay a dividend. Expedia pays out 53.1% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Expedia and Orbitz Worldwide’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Expedia | $9.45 billion | 2.31 | $1.19 billion | $2.11 | 68.31 |
| Orbitz Worldwide | N/A | N/A | N/A | N/A | N/A |
Expedia has higher revenue and earnings than Orbitz Worldwide.
Profitability
This table compares Expedia and Orbitz Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Expedia | 3.49% | 10.98% | 3.40% |
| Orbitz Worldwide | -1.77% | -31.85% | -1.30% |
Institutional & Insider Ownership
81.2% of Expedia shares are held by institutional investors. 21.0% of Expedia shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings for Expedia and Orbitz Worldwide, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Expedia | 0 | 5 | 19 | 1 | 2.84 |
| Orbitz Worldwide | 0 | 0 | 0 | 0 | N/A |
Expedia presently has a consensus target price of $160.48, suggesting a potential upside of 11.34%. Given Expedia’s higher probable upside, equities research analysts clearly believe Expedia is more favorable than Orbitz Worldwide.
Summary
Expedia beats Orbitz Worldwide on 10 of the 11 factors compared between the two stocks.
About Expedia
Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.
About Orbitz Worldwide
Orbitz Worldwide, Inc. is an online travel company. The Company offers leisure and business travelers to research, plan and book travel products and services, including hotels, flights, vacation packages, car rentals, cruises, travel insurance, destination services and event tickets. The Company’s brand portfolio includes Orbitz and CheapTickets in the United States, ebookers in Europe and HotelClub and RatesToGo (collectively HotelClub) in Asia Pacific region. Orbitz.com offers travel products and services, and mobile applications and solutions for its hotel transactions. CheapTickets is an online travel company. ebookers is a pan-European online travel agency. HotelClub is a hotel booking Website offering members a selection of hotel properties across more than 170 countries. It also owns and operates Orbitz for Business (OFB), a corporate travel management company, and the Orbitz Partner Network (OPN), which delivers private label travel solutions to a range of partners.
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