Why Orbitz Is Poised to Underperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online travel company Orbitz Worldwide (NYSE: OWW  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at Orbitz and see what CAPS investors are saying about the stock right now.

Orbitz facts

Headquarters (founded)

Chicago (2000)

Market Cap

$641.2 million

Industry

Internet retail

Trailing-12-Month Revenue

$778.8 million

Management

CEO Barney Harford (since January 2009)

CFO Michael Randolfi (since March 2013)

Return on Equity (average, past 3 years)

6.1%

Cash/Debt

$130.3 million / $440.3 million

Competitors

Expedia

priceline.com

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 34% of the 146 members who have rated Orbitz believe the stock will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, All-Star codyk500, succinctly summed up the Orbitz bear case for our community:

I anticipate some short term pain in this, but long term volatility on the stock, potential catalyst for a swing down in an earnings announcement, and really long term crumbling business model with some very scary potential competitors. Low barriers to entry, non-sticky customers. ... [A]rguably "fairly" priced unless you believe that a business like this is in decline. Only other risk is someone buying it, but my feeling is it would be cheaper for a potential buyer to launch their own service or buy a more market dominant.

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