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.

Orbitz Worldwide, Inc. (OWW): Is This the Best Online Travel Company?

Orbitz Worldwide, Inc. (NYSE:OWW)Orbitz Worldwide, Inc. (NYSE:OWW) has rewarded investors with a 250% return so far this year. However, if you weren’t in on it, don’t worry. What we need to establish is whether or not Orbitz Worldwide, Inc. (NYSE:OWW) is a better investment option than peers, Inc (NASDAQ:PCLN) and Expedia Inc (NASDAQ:EXPE).

Black and red

Orbitz Worldwide, Inc. (NYSE:OWW) has seen revenue improvements over the past three years, but growth has been slow and revenue still isn’t close to where it was in 2008. On top of that, Orbitz continues to lose money.

On the other hand, three of the last four quarters have been profitable. Investors are attracted to this because they love companies that are successfully managing a turnaround. In other words, returns on these types of businesses have the potential to be enormous.

That said, this can’t be classified as a turnaround just yet. Orbitz Worldwide, Inc. (NYSE:OWW) must deliver full year profits, (and despite the industry performing well), there are many questions about the health of the consumer on a global scale. If the industry falters, then it will be very difficult for Orbitz to show consistent improvement on the bottom-line.

Online performance

Orbitz Worldwide, Inc. (NYSE:OWW) owns several online brands, including,,,, and While this demonstrates diversification, it’s not impressive on a relative basis to peers. Inc (NASDAQ:PCLN) owns,,, and

Expedia Inc (NASDAQ:EXPE) owns,, and and Expedia have a lot more exposure to consumers. The global traffic rankings for the aforementioned websites are from

Orbitz Brands 1,514 4,924 15,187 12.446 66,653 Brands 682 1,009 150 899

Expedia Brands 487 711 1,428

The numbers below, provided by comScore, indicate industry 2012 page-view market share for,, and 31.6% 17.3% 12.9%


Not surprisingly, Inc (NASDAQ:PCLN) and Expedia Inc (NASDAQ:EXPE) have been more consistent performers. Expedia’s revenue has consistently improved. Profits have also been steady, but earnings declined in 2012, and the company reported a loss last quarter.

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.