Critical Analysis: Trip.com Group (TCOM) & Its Peers

Trip.com Group (NASDAQ:TCOM) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its peers? We will compare Trip.com Group to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Institutional & Insider Ownership

35.4% of Trip.com Group shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 23.0% of Trip.com Group shares are owned by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Trip.com Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Trip.com Group	$8.94 billion	$4.77 billion	9.09
Trip.com Group Competitors	$3.38 billion	$250.18 million	-160.80

Trip.com Group has higher revenue and earnings than its peers. Trip.com Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Trip.com Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trip.com Group	1	4	8	1	2.64
Trip.com Group Competitors	3817	17308	25629	907	2.50

Trip.com Group presently has a consensus target price of $60.45, indicating a potential upside of 37.15%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.19%. Given Trip.com Group’s peers higher probable upside, analysts plainly believe Trip.com Group has less favorable growth aspects than its peers.

Profitability

This table compares Trip.com Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trip.com Group	36.07%	16.99%	10.73%
Trip.com Group Competitors	8.57%	-41.62%	2.16%

Summary

Trip.com Group beats its peers on 10 of the 12 factors compared.

Trip.com Group Company Profile

Trip.com Group Limited is a global online travel services provider headquartered in Shanghai, China. Founded in 1999 as Ctrip, the company adopted the Trip.com Group name in 2019. Its portfolio includes Trip.com, Ctrip, Qunar and Skyscanner. The company offers travel-related services including hotel and other accommodation reservations, airline and train tickets, package tours, car rentals and corporate travel management. Its platforms also provide destination information and tools to help travelers plan and book trips.