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Watch Priceline.com Inc (PCLN), Expedia Inc (EXPE), & Orbitz Worldwide, Inc. (OWW) Very Closely

Which one should investors choose?

Now let’s evaluate the profitability, leverage ratios, and valuations of all three companies to see which stock is the best buy right now.

Priceline.com Expedia Orbitz
ROIC (%) 30 3.1 -28.23
D/E 0.2 0.6 32
EV/EBITDA 17.42 11.1 10.47
PEG 0.98 1.72 2.9

Among the three, Priceline.com Inc (NASDAQ:PCLN) is the most profitable company with the highest return on invested capital at 30%, while Expedia Inc (NASDAQ:EXPE)’s ROIC was only 3.1%. Priceline.com also has the strongest balance sheet with the lowest debt/equity ratio. It seems to deserve the highest EV multiple. However, compared to its potential growth, Priceline.com is the cheapest one with the lowest PEG ratio of nearly 1, while Orbitz Worldwide, Inc. (NYSE:OWW) has the highest PEG ratio of 2.9.

My Foolish take

Personally, I like Priceline.com Inc (NASDAQ:PCLN) the most as it is the most profitable online travel booker with the strongest balance sheet and the lowest PEG ratio. Investors could consider Priceline.com for the long-term.

The article Which Online Travel Company Should We Invest In? originally appeared on Fool.com.

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