Critical Comparison: Travelzoo (NASDAQ:TZOO) and Prosus (OTCMKTS:PROSY)

Prosus (OTCMKTS:PROSY) and Travelzoo (NASDAQ:TZOO) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Prosus and Travelzoo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosus	0	0	3	1	3.25
Travelzoo	1	1	3	0	2.40

Travelzoo has a consensus target price of $18.00, suggesting a potential upside of 187.26%. Given Travelzoo’s higher probable upside, analysts plainly believe Travelzoo is more favorable than Prosus.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosus	$6.17 billion	3.78	$12.37 billion	N/A	N/A
Travelzoo	$91.72 million	0.75	$4.70 million	$0.38	16.49

Prosus has higher revenue and earnings than Travelzoo.

Institutional and Insider Ownership

0.0% of Prosus shares are owned by institutional investors. Comparatively, 27.4% of Travelzoo shares are owned by institutional investors. 0.5% of Prosus shares are owned by company insiders. Comparatively, 43.2% 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.

Volatility & Risk

Prosus has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prosus	N/A	N/A	N/A
Travelzoo	4.98%	-132.89%	9.75%

About Prosus

Prosus N.V. engages in the e-commerce and internet businesses in Asia, Europe, Latin America, North America, and internationally. It operates internet platforms, such as classifieds, payments and fintech, food delivery, education technology, etail, ventures, social, and other internet platforms. The company was formerly known as Myriad International Holdings N.V. and changed its name to Prosus N.V. in August 2019. Prosus N.V. was incorporated in 1994 and is headquartered in Amsterdam, the Netherlands. Prosus N.V. operates as a subsidiary of Naspers Limited.

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.