Head to Head Review: MakeMyTrip (NASDAQ:MMYT) & Vipshop (NYSE:VIPS)

MakeMyTrip (NASDAQ:MMYT) and Vipshop (NYSE:VIPS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares MakeMyTrip and Vipshop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MakeMyTrip	10.07%	16.62%	5.86%
Vipshop	6.52%	16.75%	9.37%

Institutional & Insider Ownership

51.9% of MakeMyTrip shares are owned by institutional investors. Comparatively, 48.8% of Vipshop shares are owned by institutional investors. 10.3% of MakeMyTrip shares are owned by insiders. Comparatively, 29.5% of Vipshop shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

MakeMyTrip has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Vipshop has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares MakeMyTrip and Vipshop”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MakeMyTrip	$978.34 million	11.74	$95.10 million	$0.86	120.01
Vipshop	$14.85 billion	0.60	$1.06 billion	$1.84	9.38

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

Analyst Ratings

This is a summary of current recommendations for MakeMyTrip and Vipshop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MakeMyTrip	0	0	3	0	3.00
Vipshop	0	2	3	0	2.60

MakeMyTrip currently has a consensus target price of $120.00, suggesting a potential upside of 16.27%. Vipshop has a consensus target price of $18.3250, suggesting a potential upside of 6.14%. Given MakeMyTrip’s stronger consensus rating and higher possible upside, research analysts clearly believe MakeMyTrip is more favorable than Vipshop.

Summary

MakeMyTrip beats Vipshop on 7 of the 13 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 Vipshop

Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.