Comparing MakeMyTrip (MMYT) and Its Competitors

MakeMyTrip (NASDAQ: MMYT) is one of 17 publicly-traded companies in the “Transportation services” industry, but how does it compare to its competitors? We will compare MakeMyTrip to similar businesses based on the strength of its earnings, risk, institutional ownership, analyst recommendations, profitability, dividends and valuation.

Risk and Volatility

MakeMyTrip has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, MakeMyTrip’s competitors have a beta of 1.33, indicating that their average share price is 33% more volatile than the S&P 500.

Profitability

This table compares MakeMyTrip and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MakeMyTrip -28.39% -11.55% -9.62%
MakeMyTrip Competitors -21.58% -19.95% -7.30%

Insider & Institutional Ownership

40.9% of MakeMyTrip shares are held by institutional investors. Comparatively, 67.2% of shares of all “Transportation services” companies are held by institutional investors. 24.0% of shares of all “Transportation services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares MakeMyTrip and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MakeMyTrip $486.01 million -$167.76 million -9.50
MakeMyTrip Competitors $4.39 billion $410.32 million 23.94

MakeMyTrip’s competitors have higher revenue and earnings than MakeMyTrip. MakeMyTrip is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for MakeMyTrip and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MakeMyTrip 1 0 1 0 2.00
MakeMyTrip Competitors 211 827 1365 55 2.51

MakeMyTrip currently has a consensus price target of $29.50, indicating a potential upside of 92.81%. As a group, “Transportation services” companies have a potential upside of 10.17%. Given MakeMyTrip’s higher probable upside, analysts clearly believe MakeMyTrip is more favorable than its competitors.

Summary

MakeMyTrip competitors beat MakeMyTrip on 11 of the 13 factors compared.

MakeMyTrip Company Profile

MakeMyTrip Limited, an online travel company, engages in the business of selling travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, China, Colombia, and Peru. It operates through two segments, Air Ticketing, and Hotels and Packages. The company's services and products include air tickets, hotels, packages, rail tickets, bus tickets, and car hire, as well as ancillary travel requirements, such as facilitating access to travel insurance and visa processing. It allows travelers to research, plan, book, and purchase a range of travel services and products through its Websites makemytrip.com, goibibo.com, makemytrip.ae, makemytrip.com.sg, us.makemytrip.com, and redbus.in; and other technology-enhanced distribution channels, including call centers, travel stores, and travel agents' network, as well as mobile service platform. As of March 31, 2018, the company had 14 company-owned travel stores and 30 approximately franchisee-owned travel stores. MakeMyTrip Limited serves leisure travelers and small businesses. The company was founded in 2000 and is based in Gurgaon, India.

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