Care.com (CRCM) and Liberty Tripadvisor (LTRPA) Critical Analysis

Care.com (NYSE: CRCM) and Liberty Tripadvisor (NASDAQ:LTRPA) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

Care.com has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Liberty Tripadvisor has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Profitability

This table compares Care.com and Liberty Tripadvisor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Care.com 4.46% 17.27% 7.46%
Liberty Tripadvisor 0.44% 0.13% 0.10%

Earnings and Valuation

This table compares Care.com and Liberty Tripadvisor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Care.com $161.75 million 3.60 $7.04 million $0.08 242.13
Liberty Tripadvisor $1.53 billion 0.46 $21.00 million $0.09 103.89

Liberty Tripadvisor has higher revenue and earnings than Care.com. Liberty Tripadvisor is trading at a lower price-to-earnings ratio than Care.com, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

74.3% of Care.com shares are owned by institutional investors. Comparatively, 86.1% of Liberty Tripadvisor shares are owned by institutional investors. 35.9% of Care.com shares are owned by company insiders. Comparatively, 4.0% of Liberty Tripadvisor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Care.com and Liberty Tripadvisor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care.com 0 0 2 0 3.00
Liberty Tripadvisor 0 1 0 0 2.00

Care.com presently has a consensus target price of $16.00, indicating a potential downside of 17.40%. Given Care.com’s stronger consensus rating and higher possible upside, analysts plainly believe Care.com is more favorable than Liberty Tripadvisor.

Summary

Care.com beats Liberty Tripadvisor on 9 of the 14 factors compared between the two stocks.

About Care.com

Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.

About Liberty Tripadvisor

Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.

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