Amazon.com (NASDAQ:AMZN – Get Free Report) and Expedia Group (NASDAQ:EXPE – Get Free Report) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Institutional and Insider Ownership
72.2% of Amazon.com shares are owned by institutional investors. Comparatively, 90.8% of Expedia Group shares are owned by institutional investors. 9.7% of Amazon.com shares are owned by insiders. Comparatively, 9.1% of Expedia Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Amazon.com and Expedia Group, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Amazon.com | 0 | 1 | 47 | 3 | 3.04 |
Expedia Group | 1 | 19 | 11 | 3 | 2.47 |
Valuation and Earnings
This table compares Amazon.com and Expedia Group”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Amazon.com | $637.96 billion | 3.67 | $59.25 billion | $6.56 | 33.46 |
Expedia Group | $13.69 billion | 1.98 | $1.23 billion | $8.16 | 26.87 |
Amazon.com has higher revenue and earnings than Expedia Group. Expedia Group is trading at a lower price-to-earnings ratio than Amazon.com, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Amazon.com has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
Profitability
This table compares Amazon.com and Expedia Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Amazon.com | 10.54% | 23.84% | 11.14% |
Expedia Group | 7.94% | 56.25% | 5.56% |
Summary
Amazon.com beats Expedia Group on 10 of the 14 factors compared between the two stocks.
About Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
About Expedia Group
Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.
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