Comparing Despegar Com (DESP) & Orbitz Worldwide (OWW)

Despegar Com (NYSE: DESP) and Orbitz Worldwide (NYSE:OWW) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Despegar Com and Orbitz Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Despegar Com N/A N/A N/A
Orbitz Worldwide -1.77% -31.85% -1.30%

Earnings and Valuation

This table compares Despegar Com and Orbitz Worldwide’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Despegar Com $411.16 million 4.79 $17.79 million N/A N/A
Orbitz Worldwide N/A N/A N/A ($0.08) -149.00

Despegar Com has higher revenue and earnings than Orbitz Worldwide.

Insider & Institutional Ownership

72.6% of Despegar Com shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Despegar Com and Orbitz Worldwide, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Despegar Com 0 2 3 0 2.60
Orbitz Worldwide 0 0 0 0 N/A

Despegar Com currently has a consensus target price of $35.80, indicating a potential upside of 22.14%. Given Despegar Com’s higher probable upside, equities analysts clearly believe Despegar Com is more favorable than Orbitz Worldwide.

Summary

Despegar Com beats Orbitz Worldwide on 7 of the 7 factors compared between the two stocks.

About Despegar Com

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.

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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