Baidu (NASDAQ:BIDU – Get Free Report) and Trivago N.V. ADS (NASDAQ:TRVG – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Profitability
This table compares Baidu and Trivago N.V. ADS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baidu | 21.00% | 7.35% | 4.66% |
| Trivago N.V. ADS | -4.93% | -0.46% | -0.30% |
Volatility and Risk
Baidu has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baidu | $18.24 billion | 2.29 | $3.26 billion | $10.85 | 11.14 |
| Trivago N.V. ADS | $498.74 million | 0.43 | -$25.64 million | ($0.01) | -308.00 |
Baidu has higher revenue and earnings than Trivago N.V. ADS. Trivago N.V. ADS is trading at a lower price-to-earnings ratio than Baidu, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
4.5% of Trivago N.V. ADS shares are held by institutional investors. 16.7% of Baidu shares are held by insiders. Comparatively, 6.5% of Trivago N.V. ADS shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Baidu and Trivago N.V. ADS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baidu | 1 | 9 | 9 | 1 | 2.50 |
| Trivago N.V. ADS | 1 | 4 | 1 | 0 | 2.00 |
Baidu presently has a consensus price target of $128.93, suggesting a potential upside of 6.65%. Trivago N.V. ADS has a consensus price target of $4.18, suggesting a potential upside of 35.71%. Given Trivago N.V. ADS’s higher probable upside, analysts clearly believe Trivago N.V. ADS is more favorable than Baidu.
Summary
Baidu beats Trivago N.V. ADS on 12 of the 15 factors compared between the two stocks.
About Baidu
Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.
About Trivago N.V. ADS
trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.
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