Financial Comparison: Montague International (OTCMKTS:MIHL) versus Travelzoo (NASDAQ:TZOO)

Montague International (OTCMKTS:MIHL) and Travelzoo (NASDAQ:TZOO) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Volatility and Risk

Montague International has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Montague International and Travelzoo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montague International	0	0	0	0	0.00
Travelzoo	0	2	2	0	2.50

Travelzoo has a consensus price target of $15.67, suggesting a potential upside of 41.52%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts plainly believe Travelzoo is more favorable than Montague International.

Earnings & Valuation

This table compares Montague International and Travelzoo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montague International	N/A	N/A	N/A	N/A	N/A
Travelzoo	$92.85 million	1.23	$4.70 million	$0.36	30.75

Travelzoo has higher revenue and earnings than Montague International.

Institutional and Insider Ownership

27.4% of Travelzoo shares are held by institutional investors. 45.3% of Travelzoo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Montague International and Travelzoo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montague International	N/A	N/A	N/A
Travelzoo	4.32%	-101.85%	8.49%

Summary

Travelzoo beats Montague International on 9 of the 10 factors compared between the two stocks.

About Montague International

Montague International Holding Ltd., through its subsidiaries, engages in the businesses of financial services, energy, mining, entertainment, healthcare, consumer, industrial trade, and business development in the European Union, the Russian Federation, Latin America, and the United States. It offers investment advisory services and other investment solutions to corporate clients and high net worth individuals. The company also provides securities brokerage/dealership services; owns and operates a gold mining project; and designs, manufactures, and installs modular oil refining plants. In addition, it engages in real estate development business, as well as owns and operates entertainment centers, such as clubs. Montague International Holding Ltd. was formerly known as High Tech Crime Solutions Inc. and changed its name to Montague International Holding Ltd. in July 2012. The company was incorporated in 2009 and is based in Philadelphia, Pennsylvania. Montague International Holding Ltd. is a former subsidiary of LIGATT Security International, Inc.

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.