Financial Analysis: Tuniu Corporation (TOUR) versus Travelzoo (TZOO)
Tuniu Corporation (NASDAQ: TOUR) and Travelzoo (NASDAQ:TZOO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Tuniu Corporation and Travelzoo’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tuniu Corporation||$1.06 billion||0.69||-$243.11 million||($1.96)||-3.98|
|Travelzoo||$122.77 million||0.88||$10.15 million||$0.45||18.89|
Travelzoo has higher revenue, but lower earnings than Tuniu Corporation. Tuniu Corporation is trading at a lower price-to-earnings ratio than Travelzoo, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
25.1% of Travelzoo shares are owned by institutional investors. 76.1% of Tuniu Corporation shares are owned by company insiders. Comparatively, 58.5% of Travelzoo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Tuniu Corporation and Travelzoo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Tuniu Corporation and Travelzoo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tuniu Corporation presently has a consensus target price of $11.60, suggesting a potential upside of 48.72%. Given Tuniu Corporation’s higher possible upside, research analysts clearly believe Tuniu Corporation is more favorable than Travelzoo.
Volatility & Risk
Tuniu Corporation has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Travelzoo beats Tuniu Corporation on 8 of the 12 factors compared between the two stocks.
Tuniu Corporation Company Profile
Tuniu Corporation is an online leisure travel company. The Company offers a selection of packaged tours, including organized tours and self-guided tours, as well as travel-related services for leisure travelers. Its online platform, which consists of its tuniu.com Website and mobile platform, provides product and travel information to enable leisure travelers to plan their travels. Its organized tours offer pre-arranged itineraries, transportation, accommodations, entertainment, meals and tour guide services. Its self-guided tours consist of combinations of flights and hotel bookings and other optional add-ons, such as airport pick-ups. Its other travel-related services include sales of tourist attraction tickets, visa processing services, financial services, hotel booking services and air ticketing services. Its online platform contains travel guides featuring photos, information and recommendations for all destinations it covers.
Travelzoo Company Profile
Travelzoo, formerly Travelzoo Inc., is a media commerce company. The Company informs over 28 million members in Asia Pacific, Europe and North America, as well as various Website users, about the travel and entertainment deals available from a range of companies. The Company operates through three segments: Asia Pacific, Europe and North America. The Asia Pacific segment consists of the Company’s operations in Australia, China, Hong Kong, Japan, Taiwan and Southeast Asia. The Europe segment consists of the Company’s operations in France, Germany, Spain and the United Kingdom. The North America segment consists of Travelzoo’s operations in Canada and the United States. Its publications and products include the Travelzoo Websites, the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network, a network of third-party Websites that list travel deals published by Travelzoo.
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