Contrasting Travelport Worldwide Limited (TVPT) & Travelzoo (NASDAQ:TZOO)
Travelport Worldwide Limited (NYSE: TVPT) and Travelzoo (NASDAQ:TZOO) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitabiliy.
Volatility and Risk
Travelport Worldwide Limited has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
Institutional & Insider Ownership
96.8% of Travelport Worldwide Limited shares are owned by institutional investors. Comparatively, 24.5% of Travelzoo shares are owned by institutional investors. 1.2% of Travelport Worldwide Limited shares are owned by company insiders. Comparatively, 58.5% of Travelzoo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Travelport Worldwide Limited pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Travelzoo does not pay a dividend. Travelport Worldwide Limited pays out 35.3% of its earnings in the form of a dividend.
This table compares Travelport Worldwide Limited and Travelzoo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Travelport Worldwide Limited||4.42%||-48.13%||5.06%|
This is a breakdown of current ratings and recommmendations for Travelport Worldwide Limited and Travelzoo, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Travelport Worldwide Limited||0||2||1||0||2.33|
Travelport Worldwide Limited currently has a consensus price target of $15.75, indicating a potential upside of 11.46%. Given Travelport Worldwide Limited’s higher probable upside, research analysts clearly believe Travelport Worldwide Limited is more favorable than Travelzoo.
Valuation & Earnings
This table compares Travelport Worldwide Limited and Travelzoo’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Travelport Worldwide Limited||$2.39 billion||0.74||$430.35 million||$0.85||16.62|
|Travelzoo||$122.77 million||0.96||$10.15 million||$0.45||20.11|
Travelport Worldwide Limited has higher revenue and earnings than Travelzoo. Travelport Worldwide Limited is trading at a lower price-to-earnings ratio than Travelzoo, indicating that it is currently the more affordable of the two stocks.
Travelport Worldwide Limited beats Travelzoo on 8 of the 15 factors compared between the two stocks.
Travelport Worldwide Limited Company Profile
Travelport Worldwide Limited provides a travel commerce platform, which offers distribution, technology, payment, mobile and other solutions for the travel and tourism industry. The Company connects travel providers, such as airlines and hotel chains with online and offline travel agencies and other travel buyers in its business-to-business (B2B) travel commerce platform (its Travel Commerce Platform). It also provides a range of digital and mobile services that allow airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through mobile services, including applications, corporate booking tools, mobile Web and mobile messaging. Travel Commerce Platform connects travel providers and travel buyers, as well as travel agencies, travel management companies (TMCs) and corporations. As of December 31, 2016, it provided air distribution services to approximately 400 airlines globally, including approximately 125 low cost carriers (LCCs).
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.
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