Financial Analysis: MakeMyTrip (MMYT) versus Daseke (DSKE)

MakeMyTrip (NASDAQ: MMYT) and Daseke (NASDAQ:DSKE) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for MakeMyTrip and Daseke, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MakeMyTrip 1 2 2 0 2.20
Daseke 0 0 6 0 3.00

MakeMyTrip presently has a consensus target price of $33.00, indicating a potential downside of 7.43%. Daseke has a consensus target price of $14.10, indicating a potential upside of 47.95%. Given Daseke’s stronger consensus rating and higher probable upside, analysts clearly believe Daseke is more favorable than MakeMyTrip.

Volatility and Risk

MakeMyTrip has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, Daseke has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional & Insider Ownership

47.9% of MakeMyTrip shares are owned by institutional investors. Comparatively, 41.9% of Daseke shares are owned by institutional investors. 37.2% of Daseke shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares MakeMyTrip and Daseke’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MakeMyTrip $447.62 million 7.30 -$110.16 million ($1.88) -18.96
Daseke $846.30 million 0.64 $26.99 million ($0.60) -15.88

Daseke has higher revenue and earnings than MakeMyTrip. MakeMyTrip is trading at a lower price-to-earnings ratio than Daseke, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MakeMyTrip and Daseke’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MakeMyTrip -38.95% -12.00% -10.85%
Daseke 3.35% -4.69% -1.17%

Summary

Daseke beats MakeMyTrip on 12 of the 14 factors compared between the two stocks.

MakeMyTrip Company Profile

MakeMyTrip Limited, an online travel company, provides travel products and solutions in India and internationally. MakeMyTrip Limited, an online travel company, engages in the business of selling travel products and solutions in India, the United States, the Netherlands, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Hong Kong, and Bangladesh. It operates through two segments, Air Ticketing, and Hotels and Packages. The company's services and products include air tickets, hotels, packages, rail tickets, bus tickets, and car hire, as well as ancillary travel requirements, such as facilitating access to travel insurance and visa processing. It allows travelers to research, plan, book, and purchase a range of travel services and products through its Websites makemytrip.com, makemytrip.ae, makemytrip.com.sg, us.makemytrip.com, hoteltravel.com, and easytobook.com; and other technology-enhanced distribution channels, including call centers, travel stores, and travel agents' network, as well as mobile service platform. As of March 31, 2017, the company had 16 company-owned travel stores and 35 franchisee-owned travel stores. MakeMyTrip Limited serves leisure travelers and small businesses. The company was founded in 2000 and is based in Gurgaon, India.

Daseke Company Profile

Daseke, Inc. provides transportation and logistics solutions with a focus on flatbed and specialized freight in North America. It operates through Flatbed Solutions and Specialized Solutions segments. The company transports heavy haul freight, defense and commercial arms, ammunition and explosives, radioactive cargo and hazardous materials, and commercial sheet glass, as well as offers 10-wheel drive-away services. It also offers industrial warehousing and distribution services, including export packaging and free trade zone access in Savannah, Georgia; and over-dimensional cargo solution. In addition, Daseke, Inc. operates as an open deck carrier for power sports industry. The company serves automotive, port intermodal, power generation, and steel and building materials markets. As of December 31, 2017, the company operated 3,218 company-owned tractors, and 11,237 trailers, as well as 2,056 tractors owned and operated by independent contractors. Daseke, Inc. is headquartered in Addison, Texas.

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