Reviewing Trip.com Group (NASDAQ:TCOM) and Vail Resorts (NYSE:MTN)

Trip.com Group (NASDAQ:TCOM) and Vail Resorts (NYSE:MTN) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Dividends

Trip.com Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 5.7%. Trip.com Group pays out 8.1% of its earnings in the form of a dividend. Vail Resorts pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vail Resorts has raised its dividend for 3 consecutive years. Vail Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Trip.com Group has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Vail Resorts has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Trip.com Group and Vail Resorts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trip.com Group	$55.22 billion	0.77	$2.34 billion	$3.45	18.80
Vail Resorts	$2.89 billion	2.00	$230.40 million	$7.82	19.87

Trip.com Group has higher revenue and earnings than Vail Resorts. Trip.com Group is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

35.4% of Trip.com Group shares are owned by institutional investors. Comparatively, 94.9% of Vail Resorts shares are owned by institutional investors. 23.0% of Trip.com Group shares are owned by insiders. Comparatively, 1.2% of Vail Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Trip.com Group and Vail Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trip.com Group	30.95%	11.55%	6.58%
Vail Resorts	9.81%	30.25%	5.13%

Analyst Recommendations

This is a breakdown of current recommendations for Trip.com Group and Vail Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trip.com Group	0	0	10	2	3.17
Vail Resorts	1	6	3	0	2.20

Trip.com Group currently has a consensus price target of $77.2545, indicating a potential upside of 19.11%. Vail Resorts has a consensus price target of $187.20, indicating a potential upside of 20.48%. Given Vail Resorts’ higher probable upside, analysts clearly believe Vail Resorts is more favorable than Trip.com Group.

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.