Tripadvisor (NASDAQ:TRIP – Get Rating) and OneConnect Financial Technology (NYSE:OCFT – Get Rating) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and price targets for Tripadvisor and OneConnect Financial Technology, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tripadvisor | 4 | 7 | 1 | 0 | 1.75 |
OneConnect Financial Technology | 0 | 1 | 0 | 0 | 2.00 |
Tripadvisor presently has a consensus target price of $23.67, suggesting a potential upside of 53.28%. OneConnect Financial Technology has a consensus target price of $15.90, suggesting a potential upside of 324.00%. Given OneConnect Financial Technology’s stronger consensus rating and higher possible upside, analysts clearly believe OneConnect Financial Technology is more favorable than Tripadvisor.
Risk & Volatility
Valuation & Earnings
This table compares Tripadvisor and OneConnect Financial Technology’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tripadvisor | $1.49 billion | 1.46 | $20.00 million | ($0.16) | -96.50 |
OneConnect Financial Technology | $4.37 billion | 0.03 | -$129.62 million | ($2.62) | -1.43 |
Tripadvisor has higher earnings, but lower revenue than OneConnect Financial Technology. Tripadvisor is trading at a lower price-to-earnings ratio than OneConnect Financial Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tripadvisor and OneConnect Financial Technology’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Tripadvisor | -1.25% | 5.30% | 1.67% |
OneConnect Financial Technology | -15.25% | -18.71% | -7.09% |
Insider and Institutional Ownership
95.7% of Tripadvisor shares are held by institutional investors. Comparatively, 5.7% of OneConnect Financial Technology shares are held by institutional investors. 4.3% of Tripadvisor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Tripadvisor beats OneConnect Financial Technology on 10 of the 14 factors compared between the two stocks.
About Tripadvisor
TripAdvisor, Inc. is an online travel company, which owns and operates a portfolio of online travel brands. It operates through the following segments: Hotels, Media & Platform, and Experiences & Dining. The Hotels, Media and Platform segment provides contextually-relevant booking links to travel partners on websites. The Experiences and Dining segment provides information and services that allow consumers to research and book activities and attractions in popular travel destinations both through Viator, website and mobile apps. The company was founded by Nicholas Shanny and Stephen Kaufer in February 2000 and is headquartered in Needham, MA.
About OneConnect Financial Technology
OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It offers digital retail banking, digital commercial banking, digital auto insurance and life insurance, and artificial intelligence customer services, as well as sales management, risk management, and operation support services. The company also operates gamma core banking system, a customer centric solution; digitalized management platform that offers digital infrastructure for financial institutions to manage various aspects of their business, including data, smart operation, comprehensive risk, and asset and liability management, as well as accounting, personnel, and office management; Gamma FinCloud, an open PaaS and IaaS platform for ready-to-integrate financial technology components; and Blockchain network-as-a-service. In addition, it operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; and offers asset management and consulting services. The company serves customers in the financial services industry, including banking, insurance, and other financial institutions. It has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.
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