Trip.com Group (NASDAQ:TCOM – Get Free Report) and Conduent (NASDAQ:CNDT – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Risk & Volatility
Trip.com Group has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Conduent has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Trip.com Group and Conduent, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Trip.com Group | 0 | 0 | 10 | 1 | 3.09 |
Conduent | 0 | 0 | 1 | 0 | 3.00 |
Valuation and Earnings
This table compares Trip.com Group and Conduent”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Trip.com Group | $6.27 billion | 7.04 | $1.40 billion | $3.34 | 20.51 |
Conduent | $3.72 billion | 0.19 | -$296.00 million | $2.27 | 1.98 |
Trip.com Group has higher revenue and earnings than Conduent. Conduent is trading at a lower price-to-earnings ratio than Trip.com Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trip.com Group and Conduent’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Trip.com Group | 31.86% | 12.04% | 6.70% |
Conduent | 12.65% | -7.94% | -1.99% |
Insider & Institutional Ownership
35.4% of Trip.com Group shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 23.0% of Trip.com Group shares are held by company insiders. Comparatively, 1.8% of Conduent shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Trip.com Group beats Conduent on 12 of the 15 factors compared between the two stocks.
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.
About Conduent
Conduent Incorporated provides digital business solutions and services for the commercial, government, and transportation spectrum in the United States, Europe, and internationally. It operates through three segments: Commercial, Government Services, and Transportation. The Commercial segment offers business process services and customized solutions to clients in various industries; and customer experience management, business operations, healthcare claims and administration, and human capital solutions. The Government segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services; and digital payments, child support payments, government healthcare, and eligibility and enrollment solutions. The Transportation segment offers systems, support, and revenue-generating solutions to government transportation agency clients; and public safety, mobility, and digital payment solutions. This segment also provides electronic tolling, urban congestion management, and mileage-based user solutions; transit solutions; citation and permit administration, parking enforcement, and curbside demand management solutions; and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated was founded in 2016 and is headquartered in Florham Park, New Jersey.
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