Reviewing Booking (BKNG) and Moneygram International (MGI)

Booking (NASDAQ: BKNG) and Moneygram International (NASDAQ:MGI) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for Booking and Moneygram International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Booking 0 8 19 0 2.70
Moneygram International 1 1 0 0 1.50

Booking presently has a consensus price target of $2,177.35, indicating a potential upside of 3.54%. Moneygram International has a consensus price target of $17.39, indicating a potential upside of 144.59%. Given Moneygram International’s higher probable upside, analysts plainly believe Moneygram International is more favorable than Booking.

Earnings & Valuation

This table compares Booking and Moneygram International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Booking $12.68 billion 7.99 $2.34 billion $77.03 27.30
Moneygram International $1.60 billion 0.25 -$29.80 million $0.88 8.08

Booking has higher revenue and earnings than Moneygram International. Moneygram International is trading at a lower price-to-earnings ratio than Booking, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Booking and Moneygram International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Booking 18.90% 22.03% 10.24%
Moneygram International -1.97% -11.96% 1.04%

Risk & Volatility

Booking has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Moneygram International has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Institutional & Insider Ownership

90.3% of Booking shares are owned by institutional investors. Comparatively, 86.2% of Moneygram International shares are owned by institutional investors. 0.2% of Booking shares are owned by company insiders. Comparatively, 45.4% of Moneygram International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Booking beats Moneygram International on 11 of the 14 factors compared between the two stocks.

About Booking

Booking Holdings Inc, formerly 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).

About Moneygram International

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products segment provides money orders to consumers through its agents and financial institutions; and official check outsourcing services for financial institutions. This segment sells its money orders under the MoneyGram brand and on a private label or co-branded basis with retail and financial institution. The company also offers digital solutions, such as moneygram.com, mobile solutions, account deposit, and kiosk-based services. MoneyGram International, Inc. was founded in 1926 and is based in Dallas, Texas.

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