Liberty TripAdvisor Holdings (NASDAQ: LTRPA) and TrueCar (NASDAQ:TRUE) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitabiliy, dividends and valuation.
Volatility and Risk
Liberty TripAdvisor Holdings has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 3.01, meaning that its share price is 201% more volatile than the S&P 500.
Insider & Institutional Ownership
95.7% of Liberty TripAdvisor Holdings shares are owned by institutional investors. Comparatively, 83.6% of TrueCar shares are owned by institutional investors. 4.0% of Liberty TripAdvisor Holdings shares are owned by company insiders. Comparatively, 17.3% of TrueCar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Liberty TripAdvisor Holdings and TrueCar’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Liberty TripAdvisor Holdings||$1.55 billion||0.53||$238.00 million||$0.39||29.10|
|TrueCar||$291.40 million||6.37||-$20.73 million||($0.43)||-46.49|
Liberty TripAdvisor Holdings has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Liberty TripAdvisor Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Liberty TripAdvisor Holdings and TrueCar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty TripAdvisor Holdings||0||1||0||0||2.00|
TrueCar has a consensus target price of $17.06, indicating a potential downside of 14.68%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts clearly believe TrueCar is more favorable than Liberty TripAdvisor Holdings.
This table compares Liberty TripAdvisor Holdings and TrueCar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty TripAdvisor Holdings||1.87%||0.54%||0.39%|
Liberty TripAdvisor Holdings beats TrueCar on 7 of the 13 factors compared between the two stocks.
Liberty TripAdvisor Holdings Company Profile
Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.
TrueCar Company Profile
TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.
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