Despegar Com (DESP) versus The Priceline Group (PCLN) Head to Head Survey

Despegar Com (NASDAQ: DESP) and The Priceline Group (NASDAQ:PCLN) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Valuation and Earnings

This table compares Despegar Com and The Priceline Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Despegar Com N/A N/A N/A N/A N/A
The Priceline Group $11.48 billion 8.08 $4.34 billion $47.10 40.15

The Priceline Group has higher revenue and earnings than Despegar Com.

Institutional and Insider Ownership

94.4% of The Priceline Group shares are owned by institutional investors. 0.2% of The Priceline Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Despegar Com and The Priceline Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Despegar Com 0 2 2 0 2.50
The Priceline Group 0 5 25 0 2.83

Despegar Com currently has a consensus target price of $35.75, indicating a potential upside of 20.49%. The Priceline Group has a consensus target price of $1,958.21, indicating a potential upside of 3.56%. Given Despegar Com’s higher probable upside, analysts plainly believe Despegar Com is more favorable than The Priceline Group.

Profitability

This table compares Despegar Com and The Priceline Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Despegar Com 2.76% N/A N/A
The Priceline Group 20.51% 33.10% 16.30%

Summary

The Priceline Group beats Despegar Com on 8 of the 9 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.

The Priceline Group Company Profile

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

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