Expedia Vs. Booking: Choosing The Better Travel Stock

Ragmar Rikberg 1.06K Followers Follow Summary Expedia Group, Inc. and Booking Holdings Inc. are high-moat, asset-light, global travel leaders offering inflation protection and robust cash flows. EXPE currently offers a more attractive valuation, with an 11.8% free cash flow yield and a forward P/E under 10, compared to BKNG's 6.6% yield. Both companies reported strong Q2 results, with efficiency improvements and raised guidance, but EXPE's balance sheet carries higher net debt/EBITDA. I recommend a Buy on both EXPE and BKNG, favoring a 60/40 EXPE/BKNG split for diversification, while monitoring geopolitical and AI-related risks. Siarhei Khaletski/iStock via Getty Images Intro For me, Booking Holdings Inc. ( BKNG ) and Expedia Group, Inc. ( EXPE ) are bellwethers of what ideal investments should look like. As high-moat, globally dominant, growing online accommodation marketplaces with easy-to-understand business models. Having now This article was written by Ragmar Rikberg 1.06K Followers Follow I’m a lifelong entrepreneur who, alongside my other ventures, has always made time for the markets. Driven by genuine passion, I’ve been active with varying intensity for roughly 30 years, gaining perspective across multiple market cycles. I’ve built a company from scratch and operated as an entrepreneur in the food industry, lodging, and real estate, which has given me a strong, ground‑level understanding of how businesses really work. Because of that background, I always see the company behind the stock, and I like to keep the narrative and the numbers connected.The first twenty years of my market experience ran in parallel with other ventures — at times more like a hobby — but the last decade has been fully focused on the markets. Having gone through the 2000s dot‑com bubble and the 2008 subprime crisis with real skin in the game, I see both as extremely valuable lessons. I genuinely believe you learn far more from painful mistakes than from easy wins.In recent years I’ve experimented with different trading strategies, mostly built around options. I’ve won big and lost big, and in the process gained a much‑needed understanding of what prudent risk management really means — and how painful it is when it’s not implemented well. Even when I take more risk on the trading side, I keep my long‑term buy‑and‑hold positions completely separate from trading assets.My academic background is in Economics, and I’ve recently refreshed that foundation through a course aligned with the CFA curriculum, focused on securities valuation and risk management. I’m a believer in lifelong learning — it keeps you connected to new theories and how they’re applied. At the same time, I take Jesse Livermore’s century‑old, simple market truths as a core part of how I interpret everyday market behavior. I find real value in combining academic structure with Livermore‑style simple rules to gain a better understanding of the bigger picture.My passion is finding mispriced assets or situations the market may be overlooking or misinterpreting. With a deep interest in history and geopolitics, I tend to look at situations from a broader perspective. And when making investment bets, I like to keep in mind the old Gretzky quote: “I skate to where the puck is going to be, not where it has been.” Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.