Hostelworld Group (HSW) Competitors

On the Beach Group (LON:OTB) and Hostelworld Group (LON:HSW) are both small-cap consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their media sentiment, earnings, institutional ownership, profitability, community ranking, valuation, analyst recommendations, risk and dividends.

Does the MarketBeat Community believe in OTB or HSW?

On the Beach Group received 128 more outperform votes than Hostelworld Group when rated by MarketBeat users. Likewise, 80.30% of users gave On the Beach Group an outperform vote while only 68.55% of users gave Hostelworld Group an outperform vote.

Company	Underperform	Outperform
On the Beach Group	Outperform Votes 322 80.30%	Underperform Votes 79 19.70%
Hostelworld Group	Outperform Votes 194 68.55%	Underperform Votes 89 31.45%

Do insiders & institutionals hold more shares of OTB or HSW?

69.5% of On the Beach Group shares are owned by institutional investors. Comparatively, 74.2% of Hostelworld Group shares are owned by institutional investors. 10.7% of On the Beach Group shares are owned by insiders. Comparatively, 15.3% of Hostelworld Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Does the media refer more to OTB or HSW?

In the previous week, On the Beach Group and On the Beach Group both had 2 articles in the media. Hostelworld Group's average media sentiment score of 0.91 beat On the Beach Group's score of 0.17 indicating that Hostelworld Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
On the Beach Group	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Hostelworld Group	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable earnings & valuation, OTB or HSW?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
On the Beach Group	£173.07M	2.50	£14.99M	£9.15	29.12
Hostelworld Group	£109.74M	1.58	£17.72M	£9.77	11.77

Is OTB or HSW a better dividend stock?

On the Beach Group pays an annual dividend of GBX 1 per share and has a dividend yield of 0.4%. Hostelworld Group pays an annual dividend of GBX 6 per share and has a dividend yield of 5.2%. On the Beach Group pays out 10.9% of its earnings in the form of a dividend. Hostelworld Group pays out 61.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Do analysts prefer OTB or HSW?

On the Beach Group presently has a consensus target price of GBX 183.50, indicating a potential downside of 31.14%. Hostelworld Group has a consensus target price of GBX 236.33, indicating a potential upside of 105.51%. Given Hostelworld Group's higher possible upside, analysts clearly believe Hostelworld Group is more favorable than On the Beach Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
On the Beach Group	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	3.00
Hostelworld Group	0 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	3.00

Is OTB or HSW more profitable?

Hostelworld Group has a net margin of 16.15% compared to On the Beach Group's net margin of 8.66%. Hostelworld Group's return on equity of 24.88% beat On the Beach Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
On the Beach Group	8.66%	8.73%	2.35%
Hostelworld Group	16.15%	24.88%	7.30%

Which has more risk & volatility, OTB or HSW?

On the Beach Group has a beta of 2.42, indicating that its stock price is 142% more volatile than the S&P 500. Comparatively, Hostelworld Group has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Summary

Hostelworld Group beats On the Beach Group on 11 of the 18 factors compared between the two stocks.