Reviewing TUI (OTCMKTS:TUIFF) & Tuniu (NASDAQ:TOUR)

TUI (OTCMKTS:TUIFF) and Tuniu (NASDAQ:TOUR) are both consumer cyclical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Earnings & Valuation

This table compares TUI and Tuniu’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TUI	N/A	N/A	N/A	$0.31	19.58
Tuniu	$26.62 million	5.17	-$28.04 million	($0.03)	-35.33

TUI has higher earnings, but lower revenue than Tuniu. Tuniu is trading at a lower price-to-earnings ratio than TUI, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

13.6% of TUI shares are owned by institutional investors. Comparatively, 11.7% of Tuniu shares are owned by institutional investors. 76.1% of Tuniu shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TUI and Tuniu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TUI	0	4	2	0	2.33
Tuniu	0	0	0	0	N/A

Profitability

This table compares TUI and Tuniu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TUI	N/A	N/A	N/A
Tuniu	-12.31%	-5.22%	-2.70%

Summary

TUI beats Tuniu on 7 of the 9 factors compared between the two stocks.

About TUI

TUI AG, together with its subsidiaries, provides tourism services worldwide. It operates hotels and resorts under the Robinson, Riu, TUI Blue, Blue Diamond, TUI Suneo, and TUI Magic Life brands. The company is also involved in the tour operation and airlines businesses. In addition, it operates cruise liners under the Mein Schiff, Hapag-Lloyd Cruises, and Marella brands. The company operates 1,600 travel agencies and online portals; 134 aircraft; and 16 cruise liners, as well as 418 hotels. The company was formerly known as Preussag AG and changed its name to TUI AG in June 2002. TUI AG is headquartered in Hanover, Germany.

About Tuniu

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.