Intense metasearch competition blocks Tripadvisor from holding a network advantage over the next decade, despite the continued rise in industry online penetration and the company's ongoing investment in experiences (Viator) and dining (TheFork), brand in the portfolio that we think exhibit network moat characteristics.
Penetration levels are low and growing in the experience and dining markets. Tripadvisor is well positioned to benefit over the long term, given its critical-mass revenue share in these markets.
Metasearch has lower barriers than online travel agencies, and competition from new entrants that already have large user traffic (such as Meta, Amazon, Alibaba, and Google) could meaningfully affect the firm’s growth outlook. Google continues to deemphasize free organic search, which can elevate marketing costs for Tripadvisor.
|
Metric
|
TRIP
|
BKNG
|
ABNB
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.54 | 23.45 | 36.39 |
Price/Book Value | 3.99 | — | 12.51 |
Price/Sales | 2.04 | 5.86 | 10.69 |
Price/Cash Flow | 19.98 | 22.24 | 33.50 |
|
Metric
|
TRIP
|
BKNG
|
ABNB
|
|---|---|---|---|
Quick Ratio | 2.20 | 1.20 | 1.63 |
Current Ratio | 2.27 | 1.28 | 1.66 |
Interest Coverage | 2.77 | 5.97 | 17.64 |
|
Metric
|
TRIP
|
BKNG
|
ABNB
|
|---|---|---|---|
Return on Assets (Normalized) | 3.92% | 21.88% | 28.58% |
Return on Equity (Normalized) | 12.45% | — | 85.50% |
Return on Invested Capital (Normalized) | 5.76% | 39.48% | 57.72% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BKNG
| Booking Holdings Inc | Vzkvbvvqq | Ydprywj | $117.2 Bil | |
ABNB
| Airbnb Inc Ordinary Shares - Class A | Ghtgvtq | Jvrprq | $102.1 Bil | |
RCL
| Royal Caribbean Group | Rfgklwyq | Gkvpgkh | $32.8 Bil | |
TRPCF
| Trip.com Group Ltd | — | Zrhhcx | $31.8 Bil | |
TCOM
| Trip.com Group Ltd ADR | Pszfydn | Rmsgssz | $31.8 Bil | |
CCL
| Carnival Corp | Frfdglpqq | Mhcnhmh | $18.6 Bil | |
EXPE
| Expedia Group Inc | Yxsxthh | Wvtdpv | $17.5 Bil | |
NCLH
| Norwegian Cruise Line Holdings Ltd | Vjyqskf | Srbrrj | $7.7 Bil | |
SABR
| Sabre Corp | Dnzsgxcg | Zbvsxq | $975.3 Mil |
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