Critical Analysis: MakeMyTrip (MMYT) vs. Its Peers

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

Volatility and Risk

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

Earnings and Valuation

This table compares MakeMyTrip and its rivals revenue, earnings per share 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 rivals have higher revenue and earnings than MakeMyTrip. MakeMyTrip is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations for MakeMyTrip and its rivals, as reported 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, suggesting a potential upside of 92.81%. As a group, “Transportation services” companies have a potential upside of 10.17%. Given MakeMyTrip’s higher possible upside, equities analysts clearly believe MakeMyTrip is more favorable than its rivals.

Insider and 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 insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares MakeMyTrip and its rivals’ 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%

Summary

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

About MakeMyTrip

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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