Travelport Worldwide Limited (NYSE: TVPT) and Yatra Online (NASDAQ:YTRA) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Dividends

Travelport Worldwide Limited pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Yatra Online does not pay a dividend. Travelport Worldwide Limited pays out 35.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Travelport Worldwide Limited and Yatra Online, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelport Worldwide Limited 0 2 1 0 2.33
Yatra Online 0 0 5 0 3.00

Travelport Worldwide Limited currently has a consensus target price of $16.25, suggesting a potential upside of 3.57%. Yatra Online has a consensus target price of $14.96, suggesting a potential upside of 44.54%. Given Yatra Online’s stronger consensus rating and higher possible upside, analysts plainly believe Yatra Online is more favorable than Travelport Worldwide Limited.

Profitability

This table compares Travelport Worldwide Limited and Yatra Online’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelport Worldwide Limited 4.42% -50.52% 5.05%
Yatra Online -90.85% -51,721.07% -71.56%

Institutional & Insider Ownership

92.4% of Travelport Worldwide Limited shares are held by institutional investors. Comparatively, 22.0% of Yatra Online shares are held by institutional investors. 1.2% of Travelport Worldwide Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Travelport Worldwide Limited and Yatra Online’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Travelport Worldwide Limited $2.40 billion 0.81 $471.31 million $0.85 18.46
Yatra Online $152.45 million 2.30 -$42.16 million ($5.42) -1.91

Travelport Worldwide Limited has higher revenue and earnings than Yatra Online. Yatra Online is trading at a lower price-to-earnings ratio than Travelport Worldwide Limited, indicating that it is currently the more affordable of the two stocks.

Summary

Travelport Worldwide Limited beats Yatra Online on 9 of the 14 factors compared between the two stocks.

Travelport Worldwide Limited Company Profile

Travelport Worldwide Limited provides a travel commerce platform, which offers distribution, technology, payment, mobile and other solutions for the travel and tourism industry. The Company connects travel providers, such as airlines and hotel chains with online and offline travel agencies and other travel buyers in its business-to-business (B2B) travel commerce platform (its Travel Commerce Platform). It also provides a range of digital and mobile services that allow airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through mobile services, including applications, corporate booking tools, mobile Web and mobile messaging. Travel Commerce Platform connects travel providers and travel buyers, as well as travel agencies, travel management companies (TMCs) and corporations. As of December 31, 2016, it provided air distribution services to approximately 400 airlines globally, including approximately 125 low cost carriers (LCCs).

Yatra Online Company Profile

Yatra Online, Inc. is an India-based consumer travel platform and online travel agent. The Company’s segments include Air Ticketing, Hotels and Packages, and Others. Through Internet and mobile-based platform and call-centers, the Company provides the facility to book and service international and domestic air tickets to customer through business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C) channel. Through an Internet and mobile-based platform, call-centers and branch offices, the Company provides holiday packages and hotel reservations. The Other segment includes the advertisement income from hosting advertisements on its Internet Websites, income from sale of rail and bus tickets, and income from facilitating Website access to travel insurance companies. It offers multiple mobile applications for a range of consumer segments and services, including Yatra, Yatra Mini, Yatra Web Check-In, Yatra Corporate, Travelguru HomeStay and Yatra Hoteliers DESTranet.

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