Priceline.com Inc (PCLN), OpenTable Inc (OPEN) – Innovating On Everyday Tasks: Pet Medicine, Flights & Restaurant Bookings

OpenTable’s performance on the stock market is ambivalent. Nevertheless, it remains a stock to keep in mind because first-entry competitors always hold an inherent advantage. The company’s expansion seems far from reaching its limit, however. The issue is whether OpenTable will have the necessary money-in-pocket to go through with it as planned, since operational costs keep rising and its ventures abroad have yet to prove financially viable. No serious challenger has appeared so far, but competitors have already chipped the company’s revenues.

A good move for OpenTable Inc (NASDAQ:OPEN) would be for the reservation platform to continue expanding, regardless of the restaurant’s size. Such a catalyst would allow the company to set a high entrance price for competitors while allowing restaurants to switch platforms. This is where the mobile apps come into relevance, increasing potential customers and giving restaurants a reason to stick with the firm. Given these challenges, estimates remain conservative, even when the company has been reporting increasing revenues, earnings, cash flow, and free cash.

Opinions about OpenTable Inc (NASDAQ:OPEN) are not homogeneous, but management has proven itself by overturning 2010’s meager results. Through domestic expansion, international acquisition, and mobile phone incursion, the company has been able to recover its winning track. For the time being, it is recommended to hold. Nevertheless, it is important to keep an eye on the company since the firm will likely bring in greater profits once its ventures abroad stabilize.

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The companies analyzed have one thing in common: all have suffered some disgrace. PetMed suffered from Novartis’ production halt, Priceline.com Inc (NASDAQ:PCLN) confronted great domestic competition, and OpenTable experienced a price dive. Nevertheless, all three were able to cope with difficulties and continue reporting earnings. That said, I believe that PetMed’s tag price and shareholder rewards make it the most recommended of the three.

The article Innovating On Everyday Tasks: Pet Medicine, Flights & Restaurant Bookings originally appeared on Fool.com and is written by Damian Illia.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends OpenTable and Priceline.com. The Motley Fool owns shares of Priceline.com. Damian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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