TripAdvisor (NASDAQ:TRIP – Get Free Report) and Pinterest (NYSE:PINS – Get Free Report) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Earnings & Valuation
This table compares TripAdvisor and Pinterest”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TripAdvisor | $1.89 billion | 0.46 | $40.00 million | $0.01 | 738.00 |
| $4.22 billion | 2.62 | $416.86 million | $0.25 | 79.06 |
Pinterest has higher revenue and earnings than TripAdvisor. Pinterest is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TripAdvisor and Pinterest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TripAdvisor | 0.28% | 4.23% | 1.04% |
| 3.81% | 6.58% | 4.50% |
Insider and Institutional Ownership
99.0% of TripAdvisor shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 2.0% of TripAdvisor shares are held by company insiders. Comparatively, 8.1% of Pinterest shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for TripAdvisor and Pinterest, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TripAdvisor | 5 | 6 | 4 | 0 | 1.93 |
| 1 | 18 | 17 | 1 | 2.49 |
TripAdvisor currently has a consensus price target of $13.88, indicating a potential upside of 88.14%. Pinterest has a consensus price target of $25.97, indicating a potential upside of 31.38%. Given TripAdvisor’s higher probable upside, research analysts plainly believe TripAdvisor is more favorable than Pinterest.
Volatility and Risk
TripAdvisor has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Pinterest has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Summary
Pinterest beats TripAdvisor on 12 of the 15 factors compared between the two stocks.
About TripAdvisor
TripAdvisor, Inc. operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Viator's segment provides pure-play experiences online travel agency that comprehensive and connecting travelers to discover and book tours, activities, and attractions from experience operators. TheFork segment provides an online marketplace that enables diners to discover and book online reservations at restaurants. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. Tripadvisor, Inc. is a subsidiary of Liberty TripAdvisor Holdings, Inc.
About Pinterest
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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