Financial Analysis: Marchex (NASDAQ:MCHX) vs. Trip.com Group (NASDAQ:TCOM)


Marchex (NASDAQ:MCHX – Get Rating) and Trip.com Group (NASDAQ:TCOM – Get Rating) are both IT and technology companies, but which is the best investment? We’ll compare the two companies based on their risk strength, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Notes

This is a summary of current recommendations and price targets for Marchex and Trip.com Group, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Marchex 0 0 1 0 3.00
Trip.com Group 0 2 9 0 2.82

Marchex currently has a consensus target price of $4.00, indicating a potential upside of 172.11%. Trip.com Group has a consensus target price of $31.38, indicating a potential upside of 12.90%. Given Marchex’s stronger consensus rating and higher likely upside, stock analysts clearly believe Marchex is more favorable than Trip.com Group.

Volatility and risk

Marchex has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of 0.7, suggesting that its stock price stock is 30% less volatile than the S&P 500.

Institutional and insider ownership

72.4% of Marchex shares are held by institutional investors. By comparison, 66.5% of shares in the Trip.com group are held by institutional investors. 18.6% of Marchex shares are held by insiders. By comparison, 23.0% of shares in the Trip.com group are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock will outperform the market over the long term.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Marchex and Trip.com Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Marchex $53.48 million 1.16 -$4.39 million ($0.02) -73.50
Trip.com Group $3.14 billion 5:30 p.m. -$86.00 million ($0.80) -34.74

Marchex has higher earnings, but lower earnings than the Trip.com group. Marchex trades at a lower price-to-earnings ratio than the Trip.com group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Marchex and Trip.com Group.

Net margins Return on equity return on assets
Marchex -1.19% -8.11% -6.11%
Trip.com Group -16.53% 0.57% 0.32%

Marchex Company Profile (Get a rating)

Marchex, Inc. operates as an analytics and solutions company that helps businesses connect, drive, measure, and convert callers into customers in the United States and Canada. Its products include Marchex Call Analytics, an analytics platform for businesses, which depends on inbound phone calls to drive sales, appointments and bookings; Marchex Call Analytics, Conversation Edition that delivers actionable insights for enterprises, midsize and small businesses; Text Analytics and Communications, an intelligent mobile messaging solution, which enables sales, marketing and enterprise operations teams to establish two-way communications with field staff, prospects and customers through text messages /SMS; Call monitoring for call recording; and Marchex Marketing Edge, an analytics solution for marketers in large, medium, and small businesses who depend on inbound phone calls to drive sales, appointments, and bookings. The Company’s Marchex Sales Engagement products include Marchex Engage, which combines Marchex artificial intelligence and machine learning with call monitoring and scoring services; Marchex Spotlight, a product for corporate and regional managers; Marchex Engage for automotive; and Marchex Platform Services which allows companies to add Marchex conversation intelligence to their existing workflows and allows them to decode what is happening in their conversations with customers. Marchex, Inc. was incorporated in 2003 and is headquartered in Seattle, Washington.

Trip.com Group Company Profile (Get a rating)

Trip.com Group Limited operates as a travel service provider for accommodation reservation, transportation ticketing, tour and destination travel, business travel management and other travel-related services in China and abroad. The company acts as an agent for hotel-related transactions and the sale of air tickets, as well as train, long-distance bus and ferry tickets; travel insurance products, such as flight delays, air accidents and lost luggage; and airline ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracking, and airport VIP lounge services. It also offers independent leisure travelers bundled tour products that include group, semi-group, custom and packaged travel with various transportation arrangements, such as charter plane, cruise, bus and car. In addition, the company offers integrated transport and accommodation services; destination transportation and ticketing, activity, insurance, visa and tour guide services; user support, vendor management and customer relationship management services; and products and services at destination. In addition, it provides its corporate clients with business tours, incentive travel, meetings and conferences, travel data collection and analysis, industry benchmarks, cost reduction analysis travel management costs and solutions; and Corporate Travel Management System, an online platform that integrates information management, online reservation and authorization, online request and travel reporting systems. Additionally, the company offers online advertisements and financial services. It operates under the Ctrip, Qunar, Trip.com and Skyscanner brands. The company was previously known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is headquartered in Shanghai, People’s Republic of China.



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Sarah J. Greer