Contrasting QuinStreet (NASDAQ:QNST) and Trivago N.V. ADS (NASDAQ:TRVG)

Trivago N.V. ADS (NASDAQ:TRVG) and QuinStreet (NASDAQ:QNST) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Institutional & Insider Ownership

4.5% of Trivago N.V. ADS shares are owned by institutional investors. Comparatively, 97.8% of QuinStreet shares are owned by institutional investors. 6.5% of Trivago N.V. ADS shares are owned by company insiders. Comparatively, 3.5% of QuinStreet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Trivago N.V. ADS and QuinStreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trivago N.V. ADS	2.19%	7.76%	4.23%
QuinStreet	6.28%	12.73%	6.33%

Volatility & Risk

Trivago N.V. ADS has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, QuinStreet has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Trivago N.V. ADS and QuinStreet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trivago N.V. ADS	0	7	1	0	2.12
QuinStreet	0	2	4	0	2.67

Trivago N.V. ADS presently has a consensus price target of $5.57, indicating a potential upside of 38.90%. QuinStreet has a consensus price target of $23.50, indicating a potential upside of 50.26%. Given QuinStreet’s stronger consensus rating and higher probable upside, analysts clearly believe QuinStreet is more favorable than Trivago N.V. ADS.

Earnings & Valuation

This table compares Trivago N.V. ADS and QuinStreet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trivago N.V. ADS	$596.84 million	0.47	$12.69 million	$0.06	66.83
QuinStreet	$1.29 billion	0.69	$81.24 million	$1.41	11.09

QuinStreet has higher revenue and earnings than Trivago N.V. ADS. QuinStreet is trading at a lower price-to-earnings ratio than Trivago N.V. ADS, indicating that it is currently the more affordable of the two stocks.

Summary

QuinStreet beats Trivago N.V. ADS on 11 of the 14 factors compared between the two stocks.

About Trivago N.V. ADS

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.