Expedia Group (NASDAQ:EXPE) and Virgin Galactic (NYSE:SPCE) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Profitability
This table compares Expedia Group and Virgin Galactic's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Expedia Group | -22.92% | -32.01% | -4.32% |
| Virgin Galactic | N/A | -70.75% | -48.32% |
Volatility & Risk
Expedia Group has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Virgin Galactic has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.
Valuation & Earnings
This table compares Expedia Group and Virgin Galactic's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Expedia Group | $5.20 billion | 4.42 | $-2,612,000,000.00 | ($9.95) | -15.30 |
| Virgin Galactic | $240,000.00 | 28,320.04 | $-644,890,000.00 | ($1.25) | -21.14 |
Virgin Galactic has lower revenue, but higher earnings than Expedia Group. Virgin Galactic is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.7% of Expedia Group shares are held by institutional investors. Comparatively, 21.2% of Virgin Galactic shares are held by institutional investors. 5.0% of Expedia Group shares are held by insiders. Comparatively, 7.3% of Virgin Galactic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Expedia Group and Virgin Galactic, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Expedia Group | 0 | 14 | 12 | 0 | 2.46 |
| Virgin Galactic | 2 | 8 | 5 | 0 | 2.20 |
Expedia Group presently has a consensus target price of $178.3704, indicating a potential upside of 17.13%. Virgin Galactic has a consensus target price of $35.4286, indicating a potential upside of 34.10%. Given Virgin Galactic's higher probable upside, analysts plainly believe Virgin Galactic is more favorable than Expedia Group.
Summary
Expedia Group beats Virgin Galactic on 8 of the 14 factors compared between the two stocks.
