Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Expedia Inc (EXPE), Inc (PCLN): How Does This Internet Travel Company Measure Up?

Would you like to enjoy a luxurious vacation on the beach? Find an affordable seven-night cruise in Alaska? Plan an itinerary for your European adventure? If so, then Expedia Inc (NASDAQ:EXPE) might be your best option. However, this doesn’t mean Expedia is the best investment option compared to its peers.

Expedia Inc (NASDAQ:EXPE)

As many investors already know, Inc (NASDAQ:PCLN) has been the biggest winner for Internet travel companies over the years. But does that mean it’s the best investment going forward? And what about Tripadvisor Inc (NASDAQ:TRIP)? TripAdvisor has outperformed Expedia and Priceline recently.

EXPE Chart

EXPE data by YCharts

Which site has the best traffic?

According to, TripAdvisor has the most traffic.

Global Rank U.S. Rank
Expedia 523 121
Priceline 775 148
TripAdvisor 238 91

The numbers above should indicate that TripAdvisor has the most potential, but numbers can deceiving. TripAdvisor is the most popular site because travelers leave reviews about their experiences, and because potential travelers read those reviews for information prior to booking a vacation.

However, a site that’s best known for travel reviews isn’t going to have the most revenue potential. Plus, TripAdvisor isn’t the best at keeping its visitors on the page — a key factor for revenue potential.

Pageviews-Per-User Time-On-Site Bounce Rate
Expedia 4.31 5:11 34.50%
Priceline 6.32 5:43 15%
TripAdvisor 4.16 4:18 40.8%

As you can see in the chart above, Inc (NASDAQ:PCLN) dominates in every category. Visitors view more pages, stay on-site longer, and they rarely visit one page and leave. The bounce rate indicates only one pageview per visit. Therefore, you always want to look for a low bounce rate when looking at website analytics.

Other important numbers

Expedia Inc (NASDAQ:EXPE) has a short position of 8.80%. The short interest is high for several reasons:

  1. The stock is currently trading at a lofty 45 times earnings.
  2. The first quarter disappointed
  3. Guidance is weak.
  4. The consumer isn’t gaining strength, which puts a lot of pressure of the travel industry. Inc (NASDAQ:PCLN) and TripAdvisor are also dealing with an unsure economic environment. However, only TripAdvisor has a similar valuation to Expedia Inc (NASDAQ:EXPE), currently trading at 44 times earnings. Priceline isn’t cheap at 28 times earnings, but it offers the most consistent growth. Priceline’s revenue and earnings have consistently improved on an annual basis, and massive profits have become commonplace.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.