Travelzoo (TZOO) & Its Rivals Critical Review
Travelzoo (NASDAQ: TZOO) is one of 11 publicly-traded companies in the “Travel Agents” industry, but how does it contrast to its peers? We will compare Travelzoo to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.
Volatility & Risk
Travelzoo has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Travelzoo’s peers have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.
This table compares Travelzoo and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
25.5% of Travelzoo shares are owned by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are owned by institutional investors. 58.5% of Travelzoo shares are owned by insiders. Comparatively, 17.5% of shares of all “Travel Agents” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Travelzoo and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Travelzoo||$128.55 million||$6.63 million||21.25|
|Travelzoo Competitors||$3.16 billion||$214.58 million||9.31|
Travelzoo’s peers have higher revenue and earnings than Travelzoo. Travelzoo is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current ratings for Travelzoo and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Travel Agents” companies have a potential upside of 19.41%. Given Travelzoo’s peers higher possible upside, analysts plainly believe Travelzoo has less favorable growth aspects than its peers.
Travelzoo beats its peers on 6 of the 10 factors compared.
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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