Travelzoo (NASDAQ: TZOO) and The Priceline Group (NASDAQ:PCLN) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Travelzoo and The Priceline Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelzoo 0 0 0 0 N/A
The Priceline Group 0 5 24 0 2.83

The Priceline Group has a consensus target price of $1,902.50, suggesting a potential downside of 6.41%. Given The Priceline Group’s higher possible upside, analysts clearly believe The Priceline Group is more favorable than Travelzoo.

Risk & Volatility

Travelzoo has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, The Priceline Group has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Valuation and Earnings

This table compares Travelzoo and The Priceline Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Travelzoo $122.77 million 0.95 $10.15 million $0.45 19.89
The Priceline Group $11.01 billion 9.07 $4.17 billion $44.31 45.88

The Priceline Group has higher revenue and earnings than Travelzoo. Travelzoo is trading at a lower price-to-earnings ratio than The Priceline Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

24.4% of Travelzoo shares are owned by institutional investors. Comparatively, 95.2% of The Priceline Group shares are owned by institutional investors. 58.5% of Travelzoo shares are owned by company insiders. Comparatively, 0.4% of The Priceline Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Travelzoo and The Priceline Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelzoo 5.23% 21.03% 7.41%
The Priceline Group 20.12% 33.94% 16.53%

Summary

The Priceline Group beats Travelzoo on 11 of the 13 factors compared between the two stocks.

Travelzoo Company Profile

Travelzoo, formerly Travelzoo Inc., is a media commerce company. The Company informs over 28 million members in Asia Pacific, Europe and North America, as well as various Website users, about the travel and entertainment deals available from a range of companies. The Company operates through three segments: Asia Pacific, Europe and North America. The Asia Pacific segment consists of the Company’s operations in Australia, China, Hong Kong, Japan, Taiwan and Southeast Asia. The Europe segment consists of the Company’s operations in France, Germany, Spain and the United Kingdom. The North America segment consists of Travelzoo’s operations in Canada and the United States. Its publications and products include the Travelzoo Websites, the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network, a network of third-party Websites that list travel deals published by Travelzoo.

The Priceline Group Company Profile

The Priceline Group Inc. is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

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