Head to Head Analysis: TripAdvisor (NASDAQ:TRIP) & eBay (NASDAQ:EBAY)

eBay (NASDAQ:EBAY) and TripAdvisor (NASDAQ:TRIP) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Risk and Volatility

eBay has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares eBay and TripAdvisor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eBay	20.86%	38.97%	10.37%
TripAdvisor	3.53%	12.40%	3.59%

Earnings and Valuation

This table compares eBay and TripAdvisor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$10.28 billion	4.14	$1.98 billion	$4.54	20.51
TripAdvisor	$1.84 billion	1.08	$5.00 million	$0.48	35.50

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for eBay and TripAdvisor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	2	20	11	1	2.32
TripAdvisor	2	8	0	0	1.80

eBay presently has a consensus target price of $79.75, indicating a potential downside of 14.35%. TripAdvisor has a consensus target price of $17.36, indicating a potential upside of 1.88%. Given TripAdvisor’s higher possible upside, analysts plainly believe TripAdvisor is more favorable than eBay.

Institutional and Insider Ownership

87.5% of eBay shares are owned by institutional investors. Comparatively, 99.0% of TripAdvisor shares are owned by institutional investors. 0.6% of eBay shares are owned by company insiders. Comparatively, 3.1% of TripAdvisor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

eBay beats TripAdvisor on 11 of the 15 factors compared between the two stocks.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.

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.