Critical Analysis: MakeMyTrip (NASDAQ:MMYT) & Serve Robotics (NASDAQ:SERV)

MakeMyTrip (NASDAQ:MMYT) and Serve Robotics (NASDAQ:SERV) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Institutional and Insider Ownership

51.9% of MakeMyTrip shares are owned by institutional investors. 10.3% of MakeMyTrip shares are owned by company insiders. Comparatively, 5.0% of Serve Robotics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares MakeMyTrip and Serve Robotics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MakeMyTrip	$1.06 billion	4.24	$51.80 million	$0.12	398.92
Serve Robotics	$2.65 million	140.70	-$101.36 million	($2.45)	-1.76

MakeMyTrip has higher revenue and earnings than Serve Robotics. Serve Robotics is trading at a lower price-to-earnings ratio than MakeMyTrip, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MakeMyTrip and Serve Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MakeMyTrip	3.23%	-632.52%	8.31%
Serve Robotics	-2,315.80%	-55.34%	-52.06%

Volatility and Risk

MakeMyTrip has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Serve Robotics has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MakeMyTrip and Serve Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MakeMyTrip	0	2	5	0	2.71
Serve Robotics	1	1	5	1	2.75

MakeMyTrip presently has a consensus price target of $86.75, suggesting a potential upside of 81.22%. Serve Robotics has a consensus price target of $14.77, suggesting a potential upside of 243.41%. Given Serve Robotics’ stronger consensus rating and higher probable upside, analysts plainly believe Serve Robotics is more favorable than MakeMyTrip.

Summary

MakeMyTrip beats Serve Robotics on 8 of the 14 factors compared between the two stocks.

About MakeMyTrip

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.

About Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.