Trip.com Group (NASDAQ:TCOM – Get Free Report) and United Parks & Resorts (NYSE:PRKS – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Insider and Institutional Ownership
35.4% of Trip.com Group shares are owned by institutional investors. 23.0% of Trip.com Group shares are owned by insiders. Comparatively, 1.2% of United Parks & Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Trip.com Group has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trip.com Group | 0 | 0 | 11 | 2 | 3.15 |
| United Parks & Resorts | 1 | 6 | 5 | 0 | 2.33 |
Trip.com Group currently has a consensus target price of $76.98, suggesting a potential upside of 0.52%. United Parks & Resorts has a consensus target price of $57.73, suggesting a potential upside of 13.30%. Given United Parks & Resorts’ higher probable upside, analysts plainly believe United Parks & Resorts is more favorable than Trip.com Group.
Valuation & Earnings
This table compares Trip.com Group and United Parks & Resorts”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trip.com Group | $7.30 billion | 6.85 | $2.34 billion | $3.65 | 20.98 |
| United Parks & Resorts | $1.73 billion | 1.63 | $227.50 million | $3.74 | 13.62 |
Trip.com Group has higher revenue and earnings than United Parks & Resorts. United Parks & Resorts is trading at a lower price-to-earnings ratio than Trip.com Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trip.com Group and United Parks & Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trip.com Group | 31.58% | 11.30% | 6.60% |
| United Parks & Resorts | 12.39% | -47.59% | 8.15% |
Summary
Trip.com Group beats United Parks & Resorts on 11 of the 15 factors compared between the two stocks.
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 United Parks & Resorts
United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.
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