Referring to our analysis conducted for both the companies, we are assured that Priceline is an above average buy stock. Our recommendation is based on the following rationales:
In terms of profitability, the company outshines the performance of Expedia. During 2011, the operating margin of the Priceline was 32.12% which increased consistently to 35.51%. On the other hand, Expedia was struggling with declining operating margins that stood at 7.67% by the end of 2013.
The similar trend was witnessed in the Earnings per Share multiple where Priceline registered consistent increase in the multiple from 20.63 in Continue reading...