Bumble (NASDAQ:BMBL – Get Rating) and Tripadvisor (NASDAQ:TRIP – Get Rating) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Profitability
This table compares Bumble and Tripadvisor’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Bumble | -10.51% | 1.50% | 1.00% |
Tripadvisor | -1.25% | 5.30% | 1.67% |
Insider & Institutional Ownership
95.7% of Tripadvisor shares are owned by institutional investors. 7.6% of Bumble shares are owned by company insiders. Comparatively, 4.3% of Tripadvisor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Bumble | $903.50 million | 2.55 | -$79.75 million | ($0.75) | -22.31 |
Tripadvisor | $1.49 billion | 1.46 | $20.00 million | ($0.16) | -96.50 |
Tripadvisor has higher revenue and earnings than Bumble. Tripadvisor is trading at a lower price-to-earnings ratio than Bumble, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Bumble and Tripadvisor, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Bumble | 0 | 5 | 12 | 0 | 2.71 |
Tripadvisor | 4 | 7 | 1 | 0 | 1.75 |
Bumble presently has a consensus price target of $26.65, indicating a potential upside of 59.29%. Tripadvisor has a consensus price target of $23.67, indicating a potential upside of 53.28%. Given Bumble’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Bumble is more favorable than Tripadvisor.
Risk and Volatility
Bumble has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Tripadvisor has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
About Bumble
Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates two apps, Bumble and Badoo with approximately 40 million users on monthly basis, as well as Fruitz, an online dating app. Bumble Inc. was founded in 2014 in and is headquartered in Austin, Texas.
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.
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