OneSpaWorld (NASDAQ:OSW – Get Free Report) and Trip.com Group (NASDAQ:TCOM – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Analyst Recommendations
This is a breakdown of current ratings for OneSpaWorld and Trip.com Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneSpaWorld | 0 | 0 | 5 | 0 | 3.00 |
| Trip.com Group | 0 | 0 | 11 | 2 | 3.15 |
OneSpaWorld presently has a consensus target price of $22.67, indicating a potential upside of 5.08%. Trip.com Group has a consensus target price of $76.98, indicating a potential upside of 1.11%. Given OneSpaWorld’s higher probable upside, equities analysts plainly believe OneSpaWorld is more favorable than Trip.com Group.
Volatility and Risk
Profitability
This table compares OneSpaWorld and Trip.com Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OneSpaWorld | 7.74% | 15.93% | 11.85% |
| Trip.com Group | 31.58% | 11.30% | 6.60% |
Insider & Institutional Ownership
96.0% of OneSpaWorld shares are held by institutional investors. Comparatively, 35.4% of Trip.com Group shares are held by institutional investors. 3.9% of OneSpaWorld shares are held by company insiders. Comparatively, 23.0% of Trip.com Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
OneSpaWorld pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Trip.com Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. OneSpaWorld pays out 23.5% of its earnings in the form of a dividend. Trip.com Group pays out 7.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation and Earnings
This table compares OneSpaWorld and Trip.com Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneSpaWorld | $895.02 million | 2.48 | $72.86 million | $0.68 | 31.72 |
| Trip.com Group | $7.30 billion | 6.81 | $2.34 billion | $3.65 | 20.86 |
Trip.com Group has higher revenue and earnings than OneSpaWorld. Trip.com Group is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Summary
Trip.com Group beats OneSpaWorld on 10 of the 17 factors compared between the two stocks.
About OneSpaWorld
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.
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.
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