Financial Analysis: Expedia (EXPE) & Homeinns Hotel Group (HMIN)

Expedia (NASDAQ: EXPE) and Homeinns Hotel Group (NASDAQ:HMIN) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitabiliy, earnings, valuation, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares Expedia and Homeinns Hotel Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Expedia $9.06 billion 2.47 $1.10 billion $1.96 75.71
Homeinns Hotel Group N/A N/A N/A N/A N/A

Expedia has higher revenue and earnings than Homeinns Hotel Group.

Institutional & Insider Ownership

81.1% of Expedia shares are owned by institutional investors. 20.9% of Expedia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Expedia pays an annual dividend of $1.12 per share and has a dividend yield of 0.8%. Homeinns Hotel Group does not pay a dividend. Expedia pays out 57.1% of its earnings in the form of a dividend.

Profitability

This table compares Expedia and Homeinns Hotel Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Expedia 3.36% 11.01% 3.25%
Homeinns Hotel Group 8.54% 11.19% 6.33%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Expedia and Homeinns Hotel Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia 0 6 18 1 2.80
Homeinns Hotel Group 0 0 0 0 N/A

Expedia presently has a consensus target price of $148.08, indicating a potential downside of 0.21%. Given Expedia’s higher possible upside, equities analysts plainly believe Expedia is more favorable than Homeinns Hotel Group.

Summary

Expedia beats Homeinns Hotel Group on 7 of the 11 factors compared between the two stocks.

About Expedia

Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.

About Homeinns Hotel Group

Homeinns Hotel Group, formerly Home Inns & Hotels Management Inc. (Home Inns), is a holding company. The Company is an economy hotel chain in China. The Company develops and operates economy hotels across China under Homeinn, Motel, Yitel and Fairyland brands. The Company offers upgraded hotel products, which it refers to as mid-scale hotels, under the brand names Yitel and Homeinn Plus. The Company has a total of around 2,609 hotels in operation, including 2,135 hotels under the Homeinn brand, 402 hotels under the Motel brand, 41 hotels under the Yitel brand and 31 hotels under the Fairyland brand, covering a total of around 335 cities across China. The Company’s subsidiaries include Home Inns & Hotels Management (Hong Kong) Limited, Hong Kong Ai Home Hotel Investment Limited, Yitel Hotel Management (Hong Kong) Limited, Home Inns Hotel Management (Beijing) Limited and Yunnan YunshangSiji Hotels Management Co., Ltd., among others.

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