Trivago N.V. ADS (NASDAQ:TRVG) and iQIYI (NASDAQ:IQ) Head-To-Head Contrast
by Michael Walen · The Markets DailyTrivago N.V. ADS (NASDAQ:TRVG – Get Free Report) and iQIYI (NASDAQ:IQ – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Valuation & Earnings
This table compares Trivago N.V. ADS and iQIYI”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trivago N.V. ADS | $620.90 million | 0.54 | $12.69 million | $0.05 | 94.20 |
| iQIYI | $3.80 billion | 0.26 | -$29.50 million | ($0.10) | -10.20 |
Trivago N.V. ADS has higher earnings, but lower revenue than iQIYI. iQIYI is trading at a lower price-to-earnings ratio than Trivago N.V. ADS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trivago N.V. ADS and iQIYI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trivago N.V. ADS | 2.10% | 7.39% | 4.25% |
| iQIYI | -2.61% | -4.72% | -1.36% |
Institutional & Insider Ownership
4.5% of Trivago N.V. ADS shares are owned by institutional investors. Comparatively, 52.7% of iQIYI shares are owned by institutional investors. 6.5% of Trivago N.V. ADS shares are owned by company insiders. Comparatively, 57.8% of iQIYI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Trivago N.V. ADS has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, iQIYI has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Trivago N.V. ADS and iQIYI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trivago N.V. ADS | 1 | 5 | 0 | 0 | 1.83 |
| iQIYI | 2 | 1 | 2 | 0 | 2.00 |
Trivago N.V. ADS presently has a consensus price target of $3.44, indicating a potential downside of 27.02%. iQIYI has a consensus price target of $2.55, indicating a potential upside of 149.67%. Given iQIYI’s stronger consensus rating and higher probable upside, analysts clearly believe iQIYI is more favorable than Trivago N.V. ADS.
Summary
Trivago N.V. ADS beats iQIYI on 8 of the 14 factors compared between the two stocks.
About Trivago N.V. ADS
trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.