Comparing Travelzoo (NASDAQ:TZOO) and Yunji (NASDAQ:YJ)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunji	1	0	0	0	1.00
Travelzoo	0	2	3	0	2.60

Travelzoo has a consensus target price of $19.67, indicating a potential upside of 269.67%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts plainly believe Travelzoo is more favorable than Yunji.

Valuation & Earnings

This table compares Yunji 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
Yunji	$57.22 million	0.12	-$16.86 million	($3.44)	-0.42
Travelzoo	$89.92 million	0.65	$13.56 million	$0.64	8.31

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

Volatility and Risk

Yunji has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

27.4% of Travelzoo shares are owned by institutional investors. 45.3% of Yunji shares are owned by company insiders. Comparatively, 43.2% of Travelzoo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yunji	N/A	N/A	N/A
Travelzoo	8.66%	-446.70%	15.82%

Summary

Travelzoo beats Yunji on 12 of the 14 factors compared between the two stocks.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

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.