LivePerson (NASDAQ:LPSN – Get Free Report) and Trivago N.V. ADS (NASDAQ:TRVG – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility
LivePerson has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Insider & Institutional Ownership
79.8% of LivePerson shares are held by institutional investors. Comparatively, 4.5% of Trivago N.V. ADS shares are held by institutional investors. 2.0% of LivePerson shares are held by insiders. Comparatively, 6.5% of Trivago N.V. ADS 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| LivePerson | -26.24% | N/A | -6.13% |
| Trivago N.V. ADS | 2.10% | 7.39% | 4.25% |
Earnings & Valuation
This table compares LivePerson and Trivago N.V. ADS”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LivePerson | $236.00 million | 0.09 | -$67.23 million | ($10.18) | -0.18 |
| Trivago N.V. ADS | $620.90 million | 0.61 | $12.69 million | $0.05 | 106.40 |
Trivago N.V. ADS has higher revenue and earnings than LivePerson. LivePerson 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for LivePerson and Trivago N.V. ADS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LivePerson | 1 | 0 | 0 | 0 | 1.00 |
| Trivago N.V. ADS | 1 | 5 | 0 | 0 | 1.83 |
Trivago N.V. ADS has a consensus price target of $3.44, suggesting a potential downside of 35.39%. Given Trivago N.V. ADS’s stronger consensus rating and higher possible upside, analysts clearly believe Trivago N.V. ADS is more favorable than LivePerson.
Summary
Trivago N.V. ADS beats LivePerson on 11 of the 13 factors compared between the two stocks.
About LivePerson
LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.
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.
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