Critical Comparison: Travelport Worldwide Limited (TVPT) vs. The Competition

Travelport Worldwide Limited (NYSE: TVPT) is one of 11 public companies in the “Travel Agents” industry, but how does it compare to its rivals? We will compare Travelport Worldwide Limited to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Dividends

Travelport Worldwide Limited pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. Travelport Worldwide Limited pays out 41.7% of its earnings in the form of a dividend. As a group, “Travel Agents” companies pay a dividend yield of 1.1% and pay out 46.2% of their earnings in the form of a dividend. Travelport Worldwide Limited is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk & Volatility

Travelport Worldwide Limited has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Travelport Worldwide Limited’s rivals have a beta of 1.21, suggesting that their average stock price is 21% more volatile than the S&P 500.

Profitability

This table compares Travelport Worldwide Limited and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelport Worldwide Limited 3.72% -42.32% 3.96%
Travelport Worldwide Limited Competitors -18.33% -5,188.00% -11.47%

Valuation & Earnings

This table compares Travelport Worldwide Limited and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Travelport Worldwide Limited $2.35 billion $16.82 million 18.58
Travelport Worldwide Limited Competitors $3.16 billion $214.58 million 9.30

Travelport Worldwide Limited’s rivals have higher revenue and earnings than Travelport Worldwide Limited. Travelport Worldwide Limited is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for Travelport Worldwide Limited and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelport Worldwide Limited 0 1 0 0 2.00
Travelport Worldwide Limited Competitors 87 643 965 43 2.55

Travelport Worldwide Limited currently has a consensus target price of $15.50, indicating a potential upside of 15.84%. As a group, “Travel Agents” companies have a potential upside of 19.35%. Given Travelport Worldwide Limited’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Travelport Worldwide Limited has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

92.7% of Travelport Worldwide Limited shares are held by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are held by institutional investors. 1.2% of Travelport Worldwide Limited shares are held by insiders. Comparatively, 17.5% of shares of all “Travel Agents” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Travelport Worldwide Limited rivals beat Travelport Worldwide Limited on 8 of the 15 factors compared.

Travelport Worldwide Limited Company Profile

Travelport Worldwide Limited provides a travel commerce platform, which offers distribution, technology, payment, mobile and other solutions for the travel and tourism industry. The Company connects travel providers, such as airlines and hotel chains with online and offline travel agencies and other travel buyers in its business-to-business (B2B) travel commerce platform (its Travel Commerce Platform). It also provides a range of digital and mobile services that allow airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through mobile services, including applications, corporate booking tools, mobile Web and mobile messaging. Travel Commerce Platform connects travel providers and travel buyers, as well as travel agencies, travel management companies (TMCs) and corporations. As of December 31, 2016, it provided air distribution services to approximately 400 airlines globally, including approximately 125 low cost carriers (LCCs).

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