Expedia Stock vs Competition: Who Wins?

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Trefis
EXPE: Expedia logo
EXPE
Expedia

With Expedia surging 25% in a Week, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Expedia (EXPE) stock stacks up against its peers in size, valuation, growth and margin.

  • EXPE’s operating margin of 13.8% is strong, lower than most peers – trailing BKNG (34.5%).
  • EXPE’s revenue growth of 7.3% in the last 12 months is moderate, outpacing EBAY, TRIP, TZOO but lagging GOOGL, BKNG.
  • EXPE’s stock gained 44.9% over the past year and trades at a PE of 23.6, though peers like GOOGL delivered stronger returns.

As a quick background, Expedia operates as an online travel company offering retail, B2B, and trivago services with a portfolio including full-service and localized travel brands like Hotels.com, Vrbo, Orbitz, and Travelocity.

A single stock can be risky, but there is a huge value to a broader, diversified approach. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that the Trefis High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in the asset allocation strategy of Empirical Asset Management — a Boston area wealth manager and Trefis partner — whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.

  EXPE GOOGL BKNG EBAY TRIP TZOO
Market Cap ($ Bil) 32.8 3,520.8 163.6 40.2 1.8 0.1
Revenue ($ Bil) 14.4 385.5 26.0 10.5 1.9 0.1
PE Ratio 23.6 28.3 32.4 18.4 22.7 7.7
LTM Revenue Growth 7.3% 13.4% 13.0% 2.7% 4.2% 3.5%
LTM Operating Margin 13.8% 32.2% 34.5% 21.4% 7.7% 16.8%
LTM FCF Margin 20.9% 19.1% 31.9% 13.5% 13.7% 20.1%
12M Market Return 44.9% 62.2% 0.4% 42.0% 4.5% -60.9%

Why does this matter? EXPE just went up 25.1% in a week – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell EXPE Stock to see if Expedia holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through EXPE Dip Buyer Analysis lens.

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Revenue Growth Comparison

  LTM 2024 2023 2022
EXPE 7.3% 6.6% 10.0% 35.7%
GOOGL 13.4% 13.9% 8.7% 9.8%
BKNG 13.0% 11.1% 25.0% 56.0%
EBAY 2.7% 1.7% 3.2% -6.0%
TRIP 4.2% 2.6% 19.8% 65.4%
TZOO 3.5% -0.7% 19.7% 12.6%

Operating Margin Comparison

  LTM 2024 2023 2022
EXPE 13.8% 12.2% 11.9% 10.2%
GOOGL 32.2% 32.1% 27.4% 26.5%
BKNG 34.5% 31.8% 27.3% 29.9%
EBAY 21.4% 22.5% 19.2% 24.0%
TRIP 7.7% 6.2% 8.3% 6.8%
TZOO 16.8% 22.0% 18.4% 10.7%

PE Ratio Comparison

  LTM 2024 2023 2022
EXPE 23.6 19.8 27.6 39.0
GOOGL 28.3 23.3 23.9 19.2
BKNG 32.4 28.4 29.9 26.3
EBAY 18.4 15.6 8.4 -18.2
TRIP 22.7 410.6 299.3 125.9
TZOO 7.7 18.5 11.5 8.3

While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.