Financial Analysis: Travelzoo (NASDAQ:TZOO) versus Bumble (NASDAQ:BMBL)

Bumble (NASDAQ:BMBL) and Travelzoo (NASDAQ:TZOO) are both small-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Bumble has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

94.8% of Bumble shares are held by institutional investors. Comparatively, 27.4% of Travelzoo shares are held by institutional investors. 15.3% of Bumble shares are held by company insiders. Comparatively, 45.3% of Travelzoo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bumble	-58.99%	35.88%	17.46%
Travelzoo	0.51%	-9.35%	1.00%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	2	15	1	0	1.94
Travelzoo	2	0	2	0	2.00

Bumble currently has a consensus price target of $3.87, indicating a potential upside of 45.36%. Travelzoo has a consensus price target of $13.83, indicating a potential upside of 147.91%. Given Travelzoo’s stronger consensus rating and higher probable upside, analysts clearly believe Travelzoo is more favorable than Bumble.

Earnings & Valuation

This table compares Bumble and Travelzoo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$965.66 million	0.36	-$693.14 million	($4.23)	-0.63
Travelzoo	$91.72 million	0.62	$4.70 million	$0.03	186.00

Travelzoo has lower revenue, but higher earnings than Bumble. Bumble is trading at a lower price-to-earnings ratio than Travelzoo, indicating that it is currently the more affordable of the two stocks.

Summary

Travelzoo beats Bumble on 9 of the 14 factors compared between the two stocks.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

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.