TripAdvisor (NASDAQ:TRIP – Get Free Report) and Pinterest (NYSE:PINS – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Risk and Volatility
TripAdvisor has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Pinterest has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Profitability
This table compares TripAdvisor and Pinterest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TripAdvisor | -21.60% | 0.88% | 0.20% |
| 3.81% | 6.58% | 4.50% |
Valuation and Earnings
This table compares TripAdvisor and Pinterest”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TripAdvisor | $1.89 billion | 0.44 | $40.00 million | ($3.08) | -2.30 |
| $4.68 billion | 2.32 | $416.86 million | $0.25 | 75.74 |
Pinterest has higher revenue and earnings than TripAdvisor. TripAdvisor is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for TripAdvisor and Pinterest, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TripAdvisor | 5 | 6 | 3 | 0 | 1.86 |
| 1 | 18 | 17 | 1 | 2.49 |
TripAdvisor currently has a consensus price target of $12.25, indicating a potential upside of 72.78%. Pinterest has a consensus price target of $25.97, indicating a potential upside of 37.13%. Given TripAdvisor’s higher probable upside, equities research analysts plainly believe TripAdvisor is more favorable than Pinterest.
Institutional and Insider Ownership
99.0% of TripAdvisor shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 2.0% of TripAdvisor shares are held by company insiders. Comparatively, 8.1% of Pinterest shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Pinterest beats TripAdvisor on 13 of the 15 factors compared between the two stocks.
About TripAdvisor
Tripadvisor, Inc. operates a global travel platform that helps people plan and book trips. Its website and mobile app feature traveler reviews and opinions, travel information, and tools for comparing and booking hotels, restaurants, attractions, and experiences. The company’s portfolio includes Tripadvisor, Viator, which focuses on tours and activities, and TheFork, a restaurant discovery and reservation service. Its brands serve travelers, experience providers, restaurants, and other businesses in markets around the world.
About Pinterest
Pinterest, Inc. operates a visual discovery platform that helps people find ideas and plan projects across interests such as home décor, food, fashion, travel and personal style. Users can save images and videos, known as Pins, to collections called boards and explore related recommendations through the company’s website and mobile apps. The company generates revenue primarily through advertising. Its advertising products allow businesses to promote content to users, while shopping features and tools help merchants showcase products and connect with people as they explore ideas and make plans.
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