Despegar.com (NYSE: DESP) and Travelport Worldwide (NYSE:TVPT) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Valuation and Earnings
This table compares Despegar.com and Travelport Worldwide’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Despegar.com||$411.16 million||3.76||$17.79 million||N/A||N/A|
|Travelport Worldwide||$2.35 billion||0.70||$16.82 million||$0.72||18.17|
Institutional & Insider Ownership
72.6% of Despegar.com shares are held by institutional investors. Comparatively, 92.4% of Travelport Worldwide shares are held by institutional investors. 1.2% of Travelport Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Despegar.com and Travelport Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Travelport Worldwide pays an annual dividend of $0.30 per share and has a dividend yield of 2.3%. Despegar.com does not pay a dividend. Travelport Worldwide pays out 41.7% of its earnings in the form of a dividend.
This is a summary of current ratings for Despegar.com and Travelport Worldwide, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Despegar.com currently has a consensus price target of $35.80, suggesting a potential upside of 55.58%. Travelport Worldwide has a consensus price target of $17.25, suggesting a potential upside of 31.88%. Given Despegar.com’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Despegar.com is more favorable than Travelport Worldwide.
Despegar.com beats Travelport Worldwide on 7 of the 13 factors compared between the two stocks.
Despegar.com Company Profile
Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.
Travelport Worldwide Company Profile
Travelport Worldwide Limited provides a travel commerce platform, which offers distribution, technology, payment, mobile and other solutions for the travel and tourism industry. The Company connects travel providers, such as airlines and hotel chains with online and offline travel agencies and other travel buyers in its business-to-business (B2B) travel commerce platform (its Travel Commerce Platform). It also provides a range of digital and mobile services that allow airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through mobile services, including applications, corporate booking tools, mobile Web and mobile messaging. Travel Commerce Platform connects travel providers and travel buyers, as well as travel agencies, travel management companies (TMCs) and corporations. As of December 31, 2016, it provided air distribution services to approximately 400 airlines globally, including approximately 125 low cost carriers (LCCs).
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