Critical Analysis: Trip.com Group (NASDAQ:TCOM) vs. Brinker International (NYSE:EAT)

Brinker International (NYSE:EAT – Get Free Report) and Trip.com Group (NASDAQ:TCOM – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

35.4% of Trip.com Group shares are held by institutional investors. 1.4% of Brinker International shares are held by insiders. Comparatively, 23.0% of Trip.com Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Brinker International and Trip.com Group, as reported by MarketBeat.com.

Brinker International presently has a consensus target price of $243.30, indicating a potential upside of 21.82%. Trip.com Group has a consensus target price of $61.09, indicating a potential upside of 51.36%. Given Trip.com Group’s higher probable upside, analysts plainly believe Trip.com Group is more favorable than Brinker International.

Profitability

This table compares Brinker International and Trip.com Group’s net margins, return on equity and return on assets.

Volatility and Risk

Brinker International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.

Earnings and Valuation

This table compares Brinker International and Trip.com Group”s gross revenue, earnings per share and valuation.

Trip.com Group has higher revenue and earnings than Brinker International. Trip.com Group is trading at a lower price-to-earnings ratio than Brinker International, indicating that it is currently the more affordable of the two stocks.

Summary

Trip.com Group beats Brinker International on 8 of the 15 factors compared between the two stocks.

About Brinker International

(Get Free Report)

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

About Trip.com Group

(Get Free Report)

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.