Portillo’s (NASDAQ:PTLO – Get Free Report) and Trip.com Group (NASDAQ:TCOM – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
98.3% of Portillo’s shares are held by institutional investors. Comparatively, 35.4% of Trip.com Group shares are held by institutional investors. 6.3% of Portillo’s shares are held by company insiders. Comparatively, 23.0% of Trip.com Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Portillo’s and Trip.com Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Portillo’s | $732.07 million | 0.48 | $19.34 million | $0.21 | 22.24 |
| Trip.com Group | $64.79 billion | 0.46 | $4.77 billion | $6.39 | 7.19 |
Trip.com Group has higher revenue and earnings than Portillo’s. Trip.com Group is trading at a lower price-to-earnings ratio than Portillo’s, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Portillo’s and Trip.com Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Portillo’s | 2.12% | 3.17% | 0.98% |
| Trip.com Group | 48.26% | 17.57% | 10.97% |
Risk & Volatility
Portillo’s has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Portillo’s and Trip.com Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Portillo’s | 1 | 10 | 2 | 0 | 2.08 |
| Trip.com Group | 1 | 3 | 10 | 0 | 2.64 |
Portillo’s presently has a consensus price target of $5.92, suggesting a potential upside of 26.87%. Trip.com Group has a consensus price target of $63.75, suggesting a potential upside of 38.71%. Given Trip.com Group’s stronger consensus rating and higher possible upside, analysts clearly believe Trip.com Group is more favorable than Portillo’s.
Summary
Trip.com Group beats Portillo’s on 10 of the 14 factors compared between the two stocks.
About Portillo’s
Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.
About Trip.com Group
Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.
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