Travelzoo (NASDAQ:TZOO – Get Free Report) and Vivid Seats (NASDAQ:SEAT – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
Travelzoo has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Vivid Seats has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Earnings and Valuation
This table compares Travelzoo and Vivid Seats”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Travelzoo | $92.15 million | 0.66 | $4.70 million | $0.03 | 200.00 |
| Vivid Seats | $518.83 million | 0.11 | -$429.30 million | ($45.51) | -0.11 |
Travelzoo has higher earnings, but lower revenue than Vivid Seats. Vivid Seats is trading at a lower price-to-earnings ratio than Travelzoo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Travelzoo and Vivid Seats’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Travelzoo | 0.51% | -9.35% | 1.00% |
| Vivid Seats | -60.26% | -211.26% | 0.91% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Travelzoo and Vivid Seats, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Travelzoo | 2 | 0 | 2 | 0 | 2.00 |
| Vivid Seats | 2 | 6 | 2 | 0 | 2.00 |
Travelzoo presently has a consensus target price of $13.83, suggesting a potential upside of 130.56%. Vivid Seats has a consensus target price of $10.27, suggesting a potential upside of 108.67%. Given Travelzoo’s higher possible upside, research analysts plainly believe Travelzoo is more favorable than Vivid Seats.
Institutional and Insider Ownership
27.4% of Travelzoo shares are held by institutional investors. Comparatively, 39.9% of Vivid Seats shares are held by institutional investors. 45.3% of Travelzoo shares are held by company insiders. Comparatively, 60.5% of Vivid Seats shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Travelzoo beats Vivid Seats on 9 of the 12 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 Vivid Seats
Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.
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