Critical Survey: The Priceline Group (PCLN) & Its Competitors

The Priceline Group (NASDAQ: PCLN) is one of 11 publicly-traded companies in the “Travel Agents” industry, but how does it contrast to its rivals? We will compare The Priceline Group to similar businesses based on the strength of its profitability, dividends, risk, analyst recommendations, earnings, valuation and institutional ownership.

Institutional & Insider Ownership

95.1% of The Priceline Group shares are held by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are held by institutional investors. 0.2% of The Priceline Group shares are held by insiders. Comparatively, 17.5% of shares of all “Travel Agents” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares The Priceline Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Priceline Group 29.20% 33.02% 16.35%
The Priceline Group Competitors -18.33% -5,188.00% -11.47%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The Priceline Group and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Priceline Group 0 5 23 0 2.82
The Priceline Group Competitors 86 642 965 43 2.56

The Priceline Group presently has a consensus price target of $2,022.96, suggesting a potential upside of 19.19%. As a group, “Travel Agents” companies have a potential upside of 31.30%. Given The Priceline Group’s rivals higher possible upside, analysts plainly believe The Priceline Group has less favorable growth aspects than its rivals.

Volatility and Risk

The Priceline Group has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, The Priceline Group’s rivals have a beta of 1.21, meaning that their average stock price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares The Priceline Group and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
The Priceline Group $10.74 billion $2.13 billion 23.77
The Priceline Group Competitors $3.50 billion $239.18 million 13.55

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

Summary

The Priceline Group beats its rivals on 10 of the 13 factors compared.

About The Priceline Group

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

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