Travelzoo (NASDAQ:TZOO – Get Free Report) and ZoomInfo Technologies (NASDAQ:ZI – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Analyst Ratings
This is a breakdown of current recommendations for Travelzoo and ZoomInfo Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Travelzoo | 2 | 0 | 2 | 0 | 2.00 |
| ZoomInfo Technologies | 2 | 2 | 1 | 0 | 1.80 |
Travelzoo currently has a consensus target price of $13.83, indicating a potential upside of 152.43%. ZoomInfo Technologies has a consensus target price of $5.19, indicating a potential upside of 38.33%. Given Travelzoo’s stronger consensus rating and higher probable upside, research analysts clearly believe Travelzoo is more favorable than ZoomInfo Technologies.
Risk and Volatility
Institutional & Insider Ownership
27.4% of Travelzoo shares are held by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are held by institutional investors. 45.3% of Travelzoo shares are held by company insiders. Comparatively, 9.0% of ZoomInfo Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Travelzoo and ZoomInfo Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Travelzoo | 0.51% | -9.35% | 1.00% |
| ZoomInfo Technologies | 0.74% | 12.05% | 3.46% |
Valuation and Earnings
This table compares Travelzoo and ZoomInfo Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Travelzoo | $92.15 million | 0.61 | $4.70 million | $0.03 | 182.67 |
| ZoomInfo Technologies | $1.21 billion | 1.06 | $107.30 million | $0.12 | 31.25 |
ZoomInfo Technologies has higher revenue and earnings than Travelzoo. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than Travelzoo, indicating that it is currently the more affordable of the two stocks.
Summary
ZoomInfo Technologies beats Travelzoo on 8 of the 14 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 ZoomInfo Technologies
ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.
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