RetailMeNot (NASDAQ: SALE) and Viad Corp (NYSE:VVI) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their profitabiliy, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

81.0% of RetailMeNot shares are owned by institutional investors. Comparatively, 87.2% of Viad Corp shares are owned by institutional investors. 18.6% of RetailMeNot shares are owned by insiders. Comparatively, 2.1% of Viad Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares RetailMeNot and Viad Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RetailMeNot -5.43% -3.19% -2.63%
Viad Corp 4.35% 16.45% 7.05%

Risk and Volatility

RetailMeNot has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Viad Corp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Dividends

Viad Corp pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. RetailMeNot does not pay a dividend. Viad Corp pays out 14.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RetailMeNot and Viad Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RetailMeNot 3 6 0 0 1.67
Viad Corp 0 1 1 0 2.50

RetailMeNot presently has a consensus target price of $10.36, suggesting a potential downside of 10.48%. Viad Corp has a consensus target price of $49.25, suggesting a potential upside of 7.53%. Given Viad Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Viad Corp is more favorable than RetailMeNot.

Earnings and Valuation

This table compares RetailMeNot and Viad Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RetailMeNot N/A N/A N/A $0.16 72.35
Viad Corp $1.29 billion 0.72 $141.35 million $2.76 16.59

Viad Corp has higher revenue and earnings than RetailMeNot. Viad Corp is trading at a lower price-to-earnings ratio than RetailMeNot, indicating that it is currently the more affordable of the two stocks.

Summary

Viad Corp beats RetailMeNot on 10 of the 13 factors compared between the two stocks.

About RetailMeNot

RetailMeNot Inc. operates a savings destination connecting consumers with retailers, restaurants and brands, both online and in-store. The Company operates through two segments: Core and Gift Card. The Core segment consists of all other products and services that are related to its marketplace for digital offers. The Gift Card segment consists of its marketplace for gift cards. The Company’s Websites offer its consumers digital offers from retailers and brands across multiple product categories. The Company’s mobile applications allow consumers to shop when they want, where they want. The Company’s e-mail newsletter allows consumers to stay informed about featured digital offers, while its alerts notify consumers when digital offers from their preferred retailers become available. The Company provides paid merchants access to a large marketplace dedicated to digital offers, offering a large and engaged audience of consumers with intent to purchase.

About Viad Corp

Viad Corp is an international experiential services company. The Company operates through two main business groups: GES, which is a live event service provider to some of the visible and influential events and global brands, and Pursuit, which is a collection of destination travel experiences. GES conducts its operations through two geographical segments: GES U.S., which has full-service operations in exhibition market in the United States, including Las Vegas, Nevada; Chicago, Illinois; Orlando, Florida; New York, New York, and Los Angeles, California, and GES International, which had full-service operations at many of the event destinations and venues. In addition, GES offers clients a full suite of audio-visual services. Pursuit is composed of four lines of business: Hospitality (including food and beverage services and retail operations); Attractions (including food and beverage services and retail operations); Transportation, and Travel Planning.

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