Rakuten (OTCMKTS:RKUNY) vs. Trivago N.V. ADS (NASDAQ:TRVG) Critical Comparison

Rakuten (OTCMKTS:RKUNY – Get Free Report) and Trivago N.V. ADS (NASDAQ:TRVG – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Rakuten has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

4.5% of Trivago N.V. ADS shares are held by institutional investors. 6.5% of Trivago N.V. ADS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Rakuten and Trivago N.V. ADS, as provided by MarketBeat.com.

Trivago N.V. ADS has a consensus target price of $3.85, indicating a potential upside of 26.02%. Given Trivago N.V. ADS’s higher probable upside, analysts plainly believe Trivago N.V. ADS is more favorable than Rakuten.

Earnings and Valuation

This table compares Rakuten and Trivago N.V. ADS”s gross revenue, earnings per share and valuation.

Trivago N.V. ADS has lower revenue, but higher earnings than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Trivago N.V. ADS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rakuten and Trivago N.V. ADS’s net margins, return on equity and return on assets.

Summary

Trivago N.V. ADS beats Rakuten on 11 of the 15 factors compared between the two stocks.

About Rakuten

(Get Free Report)

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.

About Trivago N.V. ADS

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trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.