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 investment? We will compare the two companies based on the strength of their earnings, media sentiment, profitability, valuation, institutional ownership, dividends, community ranking, risk and analyst recommendations.

Does the media prefer HSW or OTB?

In the previous week, Hostelworld Group had 2 more articles in the media than On the Beach Group. MarketBeat recorded 3 mentions for Hostelworld Group and 1 mentions for On the Beach Group. On the Beach Group's average media sentiment score of 0.62 beat Hostelworld Group's score of -0.08 indicating that On the Beach Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hostelworld Group	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
On the Beach Group	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate HSW or OTB?

Hostelworld Group presently has a consensus target price of GBX 236.33, suggesting a potential upside of 93.72%. On the Beach Group has a consensus target price of GBX 183.50, suggesting a potential downside of 29.27%. Given Hostelworld Group's higher probable upside, equities research 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

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%

Does the MarketBeat Community favor HSW or OTB?

On the Beach Group received 127 more outperform votes than Hostelworld Group when rated by MarketBeat users. Likewise, 80.30% of users gave On the Beach Group an outperform vote while only 68.66% of users gave Hostelworld Group an outperform vote.

Company	Underperform	Outperform
Hostelworld Group	Outperform Votes 195 68.66%	Underperform Votes 89 31.34%
On the Beach Group	Outperform Votes 322 80.30%	Underperform Votes 79 19.70%

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 4.9%. 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.

Which has more risk & volatility, HSW or OTB?

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

Which has higher 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	1.67	£17.72M	£9.77	12.49
On the Beach Group	£173.07M	2.43	£14.99M	£9.15	28.35

Do insiders and institutionals believe in HSW or OTB?

74.2% of Hostelworld Group shares are owned by institutional investors. Comparatively, 69.5% of On the Beach Group shares are owned by institutional investors. 15.3% of Hostelworld Group shares are owned by company insiders. Comparatively, 10.7% of On the Beach Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Hostelworld Group beats On the Beach Group on 11 of the 19 factors compared between the two stocks.