Hostelworld Group (HSW) Competitors

Hostelworld Group (LON:HSW) and On the Beach Group (LON:OTB) are both small-cap consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, media sentiment, earnings, dividends and institutional ownership.

Do analysts prefer HSW or OTB?

Hostelworld Group presently has a consensus target price of GBX 236.33, suggesting a potential upside of 100.83%. On the Beach Group has a consensus target price of GBX 183.50, suggesting a potential downside of 29.58%. Given Hostelworld Group's higher probable upside, equities analysts plainly believe Hostelworld Group is more favorable than On the Beach Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hostelworld Group	0 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	3.00
On the Beach Group	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the media prefer HSW or OTB?

In the previous week, Hostelworld Group had 7 more articles in the media than On the Beach Group. MarketBeat recorded 7 mentions for Hostelworld Group and 0 mentions for On the Beach Group. Hostelworld Group's average media sentiment score of 0.17 beat On the Beach Group's score of 0.00 indicating that Hostelworld Group is being referred to more favorably in the media.

Company	Overall Sentiment
Hostelworld Group	Neutral
On the Beach Group	Neutral

Which has preferable earnings and valuation, HSW or OTB?

Hostelworld Group has higher earnings, but lower revenue than On the Beach Group. Hostelworld Group is trading at a lower price-to-earnings ratio than On the Beach Group, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hostelworld Group	£109.74M	1.61	£17.72M	£9.77	12.04
On the Beach Group	£173.07M	2.44	£14.99M	£9.15	28.47

Is HSW or OTB more profitable?

Hostelworld Group has a net margin of 16.15% compared to On the Beach Group's net margin of 8.66%. Hostelworld Group's return on equity of 24.88% beat On the Beach Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Hostelworld Group	16.15%	24.88%	7.30%
On the Beach Group	8.66%	8.73%	2.35%

Which has more volatility and risk, HSW or OTB?

Hostelworld Group has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, On the Beach Group has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500.

Do insiders and institutionals hold more shares of HSW or OTB?

74.2% of Hostelworld Group shares are held by institutional investors. Comparatively, 69.5% of On the Beach Group shares are held by institutional investors. 15.3% of Hostelworld Group shares are held by company insiders. Comparatively, 10.7% of On the Beach Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Is HSW or OTB a better dividend stock?

Hostelworld Group pays an annual dividend of GBX 6 per share and has a dividend yield of 5.1%. On the Beach Group pays an annual dividend of GBX 1 per share and has a dividend yield of 0.4%. Hostelworld Group pays out 61.4% of its earnings in the form of a dividend. On the Beach Group pays out 10.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Hostelworld Group beats On the Beach Group on 12 of the 17 factors compared between the two stocks.