Match Group (NASDAQ:MTCH) versus Travelzoo (NASDAQ:TZOO) Critical Survey

Match Group (NASDAQ:MTCH) and Travelzoo (NASDAQ:TZOO) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

94.1% of Match Group shares are held by institutional investors. Comparatively, 27.4% of Travelzoo shares are held by institutional investors. 0.7% of Match Group shares are held by company insiders. Comparatively, 45.3% of Travelzoo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Match Group and Travelzoo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Match Group	0	8	8	0	2.50
Travelzoo	1	1	2	0	2.25

Match Group currently has a consensus price target of $44.38, indicating a potential upside of 1.59%. Travelzoo has a consensus price target of $13.83, indicating a potential upside of 177.78%. Given Travelzoo’s higher probable upside, analysts plainly believe Travelzoo is more favorable than Match Group.

Valuation and Earnings

This table compares Match Group and Travelzoo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Match Group	N/A	N/A	N/A	$2.83	15.44
Travelzoo	$92.15 million	0.55	$306,060.00	$0.03	166.00

Travelzoo has higher revenue and earnings than Match Group. Match Group 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 Match Group and Travelzoo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Match Group	N/A	N/A	N/A
Travelzoo	N/A	N/A	N/A

Summary

Match Group beats Travelzoo on 4 of the 7 factors compared between the two stocks.

About Match Group

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, 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.