If you're not convinced how lucrative TRIP's business model is or the potential upside for its stock, just look at a company named Priceline.com (PCLN).
One of my favorite charts is the 10-year price chart for Priceline. Oh what a beautiful sight, and very few imagined in 2006 or 2007 that in 7 years shares of PCLN would trade as high as $1,198.
PCLN data by YCharts
Some day the chart for TripAdvisor just might resemble the chart above. The same could be said for YELP, and that's why Jim Cramer recently wrote, "Yelp has this remarkable business model of user-generated content married with salespeople who try to get customers to advertise their wares so that you can find them easily, or order from them after you read a review."
Jim went on to call Yelp "the online, mobile Yellow Pages and it, too, is a license to print money. Unlike the phone companies, where growth was always hampered by regulation, there is no regulation for Yelp and it can expand worldwide with the same business model and the same fast-move advantage."
If Yelp is like the online, mobile Yellow Pages, TripAdvisor is the online, mobile version of the most successful travel clubs for boomers including AAA, AARP or The Good Sam Club. That's part of the reason the 25 analysts who cover TRIP are looking for sales growth and revenue to increase by over 20% per quarter.
Investors would be wise to listen to the company's earnings conference call on Feb 11.
I'll close with a chart that compares the stock price history of both TRIP and YELP. You'll see how similar both stocks have performed. The winner over the next year or two based on the chart below is too close to call, but so far TRIP trumps YELP.
TRIP data by YCharts
At the time of publication the author had no positions in any of the other companies mentioned in this article.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.