TCOM (Trip.com Group Ltd) vs S&P 500 Comparison

TCOM

S&P 500

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TCOM

S&P 500

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TCOM

S&P 500

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Trip.com Group Ltd
Glance View

Economic Moat

None

Market Cap

42.2B USD

Industry

Hotels, Restaurants & Leisure

Trip.com Group Ltd., formerly known as Ctrip.com, has woven a remarkable narrative in the ever-evolving travel industry. Launched from ground zero in Shanghai in 1999, the company began by providing internet-based travel services when digital booking was still a novel concept in China. It quickly evolved into a comprehensive one-stop travel platform that serves the diverse needs of globetrotters and corporate travelers alike. Trip.com operates by offering a broad spectrum of travel services—airline tickets, hotel reservations, packaged tours, and corporate travel management—under its various brands, including Ctrip, Skyscanner, and Qunar. Its strength lies in its ability to harness cutting-edge technology to offer convenience, efficiency, and personalized travel solutions to its vast customer base. The revenue model of Trip.com Group is as diverse as its services. Primarily, the company generates income through service fees charged on bookings made through its online portals and mobile apps. This includes commissions from airlines, hotel networks, and other travel service providers. Another stream comes from advertising services, especially given its substantial online traffic, placing it as an attractive space for marketers. The company also benefits from Skyscanner, which offers metasearch services for airline tickets, gleaning significant ad revenues in the process. By continuously expanding its geographic footprint and enhancing its tech-driven offerings, Trip.com has entrenched itself as a formidable player in the global travel market, effectively bridging the gap between travelers and their destinations.

View TCOM Analysis

TCOM Intrinsic Value

Undervaluation 30%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

TCOM

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S&P 500

Stocks Performance
TCOM vs S&P 500

Performance Gap
TCOM vs S&P 500

Performance By Year
TCOM vs S&P 500

Competitors Performance
Trip.com Group Ltd vs Peers

Trip.com Group Ltd
Glance View

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TCOM vs S&P 500

Stocks Performance TCOM vs S&P 500

Performance Gap TCOM vs S&P 500

Performance By Year TCOM vs S&P 500

Competitors Performance Trip.com Group Ltd vs Peers

Trip.com Group Ltd Glance View

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TCOM

vs

S&P 500

Stocks Performance
TCOM vs S&P 500

Performance Gap
TCOM vs S&P 500

Performance By Year
TCOM vs S&P 500

Competitors Performance
Trip.com Group Ltd vs Peers

Trip.com Group Ltd
Glance View