Investors are evaluating the potential of two major players in the retail and travel sectors: **Coupang** and **Expedia Group**. Both companies are publicly traded, with **Coupang** listed on the NYSE under the ticker **CPNG** and **Expedia Group** on the NASDAQ as **EXPE**. This analysis examines their profitability, analyst ratings, valuation metrics, and institutional ownership to determine which company may present a better investment opportunity.
Financial Performance and Valuation
A comparison of earnings reveals significant differences between the two companies. **Coupang** is currently projected to achieve a consensus target price of **$29.89**, indicating a potential upside of **75.91%**. In contrast, **Expedia Group** has a target price of **$288.23**, which suggests a more modest upside of **35.53%**. These figures illustrate that analysts are more optimistic about **Coupang**’s growth potential in the near term.
In terms of valuation, both companies exhibit strong earnings per share, but **Coupang**’s higher growth expectations have led analysts to favor it as a more favorable investment. The emphasis on revenue generation also highlights the differences in their business models, with **Coupang** focusing on e-commerce and **Expedia Group** on travel services.
Ownership and Institutional Insights
Institutional ownership can be a strong indicator of a company’s stability and growth prospects. Currently, **83.7%** of **Coupang** shares are held by institutional investors, while **Expedia Group** boasts a slightly higher institutional ownership of **90.8%**. Additionally, **12.8%** of **Coupang** shares are held by insiders, compared to **9.1%** for **Expedia Group**. This suggests that while both companies have strong backing from institutional investors, **Coupang** has a higher level of insider confidence.
Profitability and Risk Assessment
Analyzing profitability metrics such as net margins, return on equity, and return on assets reveals further insights. While **Expedia Group** surpasses **Coupang** in several profitability measures, the latter’s potential for rapid growth may offset its current profitability metrics.
Risk assessment shows that **Coupang** has a beta of **1.2**, indicating that its share price is about **20%** more volatile than the S&P 500. In comparison, **Expedia Group** has a beta of **1.42**, suggesting a **42%** greater volatility. This higher level of risk for **Expedia Group** may deter more conservative investors, while offering potential for greater returns for those willing to accept the volatility.
Corporate Profiles
**Coupang, Inc.**, founded in **2010** and headquartered in **Seattle, Washington**, operates primarily in South Korea. It offers a wide range of products through its online platforms, including home goods, electronics, and groceries. Additionally, **Coupang** provides services like **Rocket Fresh** for grocery delivery, **Coupang Eats** for restaurant delivery, and **Coupang Play** for streaming content.
**Expedia Group, Inc.**, established in **1996** and also based in **Seattle**, functions as a global online travel company. Its business segments include **B2C**, **B2B**, and **trivago**. The B2C segment encompasses various travel brands including **Brand Expedia**, **Hotels.com**, and **Vrbo**, catering to diverse lodging and travel needs. The B2B segment enables travel technology solutions for other businesses, while trivago serves as a hotel metasearch platform.
In summary, while **Expedia Group** excels in established profitability metrics, **Coupang** offers greater growth potential according to analysts’ recommendations. As institutional backing remains strong for both companies, investors must weigh the risks and rewards associated with each to determine the best fit for their portfolios.
