In a recent commentary, CNBC's Jim Cramer highlighted Expedia Group (EXPE) as the more attractively valued option compared to Booking Holdings (BKNG), citing valuation metrics and growth prospects. The assessment comes amid rising investor interest in travel tech equities.
- Expedia (EXPE) trades at a forward P/E of ~18x, significantly below Booking Holdings (BKNG) at ~24x
- Both companies reported strong Q3 2025 EBITDA margins—EXPE at 28%, BKNG at 31%
- Cramer cites Expedia’s diversified brand portfolio as a competitive advantage
- EXPE shares rose 2.7% in early trading post-commentary, outperforming BKNG’s 0.5% gain
- Investor sentiment is shifting toward value-oriented exposure in travel tech
- The commentary may trigger rebalancing in portfolios focused on consumer discretionary and travel sectors
Jim Cramer has identified Expedia Group (EXPE) as the more compelling investment relative to Booking Holdings (BKNG), emphasizing a significant valuation gap between the two travel industry leaders. While both companies operate in the global online travel sector, Cramer pointed to EXPE’s lower price-to-earnings (P/E) ratio and more favorable forward earnings multiples as key differentiators. He noted that EXPE trades at a P/E of approximately 18x based on next year’s earnings estimates, compared to BKNG’s 24x forward P/E, suggesting greater upside potential for Expedia given similar revenue growth trajectories. The divergence in valuation comes despite both firms reporting strong booking volumes and improving margins in the fourth quarter of 2025. Expedia’s adjusted EBITDA margin reached 28% in Q3 2025, up from 25% a year prior, while Booking reported a 31% margin, reflecting tighter cost discipline. However, Cramer argued that Expedia’s lower valuation, combined with its broader portfolio of brands including Hotels.com and Trivago, offers a more resilient and scalable platform for future innovation. Market reaction has been immediate, with EXPE shares rising 2.7% in early trading while BKNG edged up just 0.5%. Analysts tracking the sector note that investor sentiment is shifting toward value-oriented exposure in travel tech, especially as macroeconomic headwinds pressure discretionary spending. The relative performance of EXPE versus BKNG may prompt portfolio rebalancing among retail and institutional investors alike. Cramer’s remarks underscore a growing debate over where to position in the travel tech space: whether to favor the premium brand and higher margins of Booking Holdings or the lower entry point and diversified asset base of Expedia Group.