Booking (NASDAQ:BKNG – Get Free Report) and 1stdibs.com (NASDAQ:DIBS – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.
Volatility & Risk
Booking has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, 1stdibs.com has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Earnings & Valuation
This table compares Booking and 1stdibs.com”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Booking | $23.74 billion | 7.82 | $5.88 billion | $160.74 | 35.48 |
| 1stdibs.com | $88.26 million | 1.08 | -$18.63 million | ($0.55) | -4.87 |
Booking has higher revenue and earnings than 1stdibs.com. 1stdibs.com is trading at a lower price-to-earnings ratio than Booking, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Booking and 1stdibs.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Booking | 22.58% | -143.67% | 23.29% |
| 1stdibs.com | -22.69% | -19.49% | -13.42% |
Analyst Recommendations
This is a summary of recent ratings for Booking and 1stdibs.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Booking | 0 | 10 | 19 | 2 | 2.74 |
| 1stdibs.com | 0 | 1 | 0 | 0 | 2.00 |
Booking currently has a consensus target price of $5,453.15, suggesting a potential downside of 4.38%. Given Booking’s stronger consensus rating and higher probable upside, analysts clearly believe Booking is more favorable than 1stdibs.com.
Institutional and Insider Ownership
92.4% of Booking shares are owned by institutional investors. Comparatively, 67.0% of 1stdibs.com shares are owned by institutional investors. 0.2% of Booking shares are owned by insiders. Comparatively, 19.6% of 1stdibs.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Booking beats 1stdibs.com on 13 of the 15 factors compared between the two stocks.
About Booking
Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).
About 1stdibs.com
1stdibs.Com, Inc. operates an online marketplace for luxury design products worldwide. Its marketplace connects customers with sellers and makers of vintage, antique, and contemporary furniture; and home décor, jewelry, watches, art, and fashion products. The company was incorporated in 2000 and is headquartered in New York, New York.
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