Tripadvisor (TRIP) versus GigaMedia (GIGM) Critical Survey

Tripadvisor (NASDAQ:TRIP) and GigaMedia (NASDAQ:GIGM) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Tripadvisor and GigaMedia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tripadvisor $1.62 billion 4.04 $113.00 million $1.05 44.95
GigaMedia $7.10 million 3.78 -$3.19 million N/A N/A

Tripadvisor has higher revenue and earnings than GigaMedia.

Profitability

This table compares Tripadvisor and GigaMedia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tripadvisor 8.31% 10.24% 6.52%
GigaMedia -44.71% -4.59% -4.28%

Institutional & Insider Ownership

89.3% of Tripadvisor shares are owned by institutional investors. 3.5% of Tripadvisor shares are owned by company insiders. Comparatively, 1.0% of GigaMedia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tripadvisor and GigaMedia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tripadvisor 4 9 3 0 1.94
GigaMedia 0 0 0 0 N/A

Tripadvisor presently has a consensus price target of $55.29, suggesting a potential upside of 17.13%. Given Tripadvisor’s higher probable upside, equities research analysts clearly believe Tripadvisor is more favorable than GigaMedia.

Risk & Volatility

Tripadvisor has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Summary

Tripadvisor beats GigaMedia on 11 of the 11 factors compared between the two stocks.

About Tripadvisor

TripAdvisor, Inc. operates as an online travel company. It operates in two segments, Hotel and Non-Hotel. The company operates TripAdvisor-branded Websites, including tripadvisor.com in the United States; and localized versions of the Website in 48 markets and 28 languages. It also manages and operates other travel media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as airfarewatchdog.com, bookingbuddy.com, cruisecritic.com, familyvacationcritic.com, flipkey.com, thefork.com, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, onetime.com, oyster.com, seatguru.com, smartertravel.com, tingo.com, vacationhomerentals.com, and viator.com, as well as www.bokun.io and holidaylettings.co.uk. In addition, the company provides information and services for consumers to research and book restaurants in travel destinations; and vacation and short-term rental properties, including full home rentals, condominiums, villas, beach rentals, cabins, and cottages. Its Websites feature 730 million reviews and opinions on 8.1 million places comprising 1.3 million hotels, inns, B&Bs, and specialty lodging; 875,000 rental properties; 4.9 million restaurants; and 1.0 million travel activities and experiences worldwide. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

About GigaMedia

GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.

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