Better Value & Growth: CCL Leads Expedia Stock
CCL is Expedia’s peer in Hotels, Resorts & Cruise Lines industry that has:
1) Lower valuation (P/OpInc) compared to Expedia stock
2) But higher revenue and operating income growth
This disconnect between valuation and performance could mean that you are better off buying CCL stock vs. EXPE stock
You can’t predict the next crash, but you can prepare. See how High Quality Portfolio helps you.
- Why Expedia Stock Is Soaring After Q3 Results?
- Better Bet Than Expedia Stock: Pay Less To Get More From CCL
- With EXPE Up 19% in a Month, Is It Time to Compare It Against CCL?
- Better Bet Than Expedia Stock: Pay Less To Get More From CCL
- S&P 500 Stocks Trading At 52-Week High
- S&P 500 Stocks Trading At 52-Week High
Key Metrics Compared
| Metric | EXPE | CCL |
|---|---|---|
| P/OpInc* | 16.3x | 8.8x |
| LTM OpInc Growth | 7.3% | 26.8% |
| 3Y Avg OpInc Growth | 20.2% | 270.6% |
| LTM Revenue Growth | 5.7% | 7.1% |
| 3Y Avg Revenue Growth | 9.6% | 45.9% |
OpInc = Operating Income, P/OpInc = Price To Operating Income Ratio
But do these numbers tell the full story? Read Buy or Sell EXPE Stock to see if Expedia still has an edge that holds up under the hood. As a quick background, Expedia (EXPE) 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.
This is just one approach to evaluate investments. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Is The Mismatch In Stock Price Temporary
One way to check if Expedia stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for Expedia in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for Expedia would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | EXPE | CCL |
|---|---|---|
| P/OpInc* | 12.3x | 6.8x |
| LTM OpInc Growth | 8.0% | 48.3% |
| 3Y Avg OpInc Growth | 62.5% | 140.2% |
| LTM Revenue Growth | 5.6% | 10.8% |
| 3Y Avg Revenue Growth | 13.2% | 81.1% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | EXPE | CCL |
|---|---|---|
| P/S | 2.0x | 1.4x |
| Market Cap (Current) | $ 27.8 Bil | $ 37.9 Bil |
| LTM Revenue | $ 14.02 Bil | $ 26.23 Bil |
| LTM Opinc | $ 1.70 Bil | $ 4.31 Bil |
| LTM Op Margin | 12.1% | 16.4% |
OpInc = Operating Income
Alternate buying based on valuation, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.