Comparing Travelzoo (NASDAQ:TZOO) and Bumble (NASDAQ:BMBL)

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

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%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$965.66 million	0.35	-$693.14 million	($4.23)	-0.60
Travelzoo	$91.72 million	0.58	$4.70 million	$0.03	174.67

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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Bumble and Travelzoo, as provided by MarketBeat.com.

	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 presently has a consensus target price of $3.87, indicating a potential upside of 51.63%. Travelzoo has a consensus target price of $13.83, indicating a potential upside of 163.99%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts clearly believe Travelzoo is more favorable than Bumble.

Insider & Institutional Ownership

94.8% of Bumble shares are owned by institutional investors. Comparatively, 27.4% of Travelzoo shares are owned by institutional investors. 15.3% of Bumble shares are owned by company insiders. Comparatively, 45.3% of Travelzoo shares are owned 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.

Volatility & Risk

Bumble has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

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.