Contrasting LMP Automotive (OTCMKTS:LMPX) and Travelzoo (NASDAQ:TZOO)

Travelzoo (NASDAQ:TZOO) and LMP Automotive (OTCMKTS:LMPX) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Travelzoo and LMP Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travelzoo	8.66%	-446.70%	15.82%
LMP Automotive	N/A	N/A	N/A

Earnings & Valuation

This table compares Travelzoo and LMP Automotive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travelzoo	$89.92 million	0.66	$13.56 million	$0.64	8.53
LMP Automotive	N/A	N/A	N/A	N/A	N/A

Travelzoo has higher revenue and earnings than LMP Automotive.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Travelzoo and LMP Automotive, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travelzoo	0	2	3	0	2.60
LMP Automotive	0	0	0	0	0.00

Travelzoo currently has a consensus target price of $19.67, suggesting a potential upside of 260.20%. Given Travelzoo’s stronger consensus rating and higher probable upside, research analysts plainly believe Travelzoo is more favorable than LMP Automotive.

Institutional and Insider Ownership

27.4% of Travelzoo shares are owned by institutional investors. 43.2% of Travelzoo shares are owned by insiders. Comparatively, 38.7% of LMP Automotive shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Travelzoo has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, LMP Automotive has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Summary

Travelzoo beats LMP Automotive on 9 of the 10 factors compared between the two stocks.

About Travelzoo

Travelzoo, together with its subsidiaries, operates as an Internet media company that provides travel, entertainment, and local experiences worldwide. It operates in four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives. The company offers Travelzoo website, Travelzoo Top 20 email newsletters, Standalone email newsletters, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters. The company's Travelzoo website and newsletters include local deals and getaways listings that allow members to purchase vouchers for offers from local businesses, such as spas, hotels, and restaurants; Jack's Flight Club, a subscription service that provides members with information about exceptional airfares; and Travelzoo Network, a network of third-party websites that list travel deals published by the company. It serves airlines, hotels, cruise lines, vacations packagers, tour operators, destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity companies. Travelzoo Inc. was incorporated in 1998 and is headquartered in New York, New York.

About LMP Automotive

LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. It primarily buys pre-owned automobiles primarily through auctions or directly from other automobile dealers, as well as new automobiles from manufacturers and distributors at fleet rates. The company was incorporated in 2017 and is headquartered in Fort Lauderdale, Florida.