Head-To-Head Analysis: Travelzoo (NASDAQ:TZOO) and Rumble (NASDAQ:RUM)

by · The Cerbat Gem

Rumble (NASDAQ:RUMGet Free Report) and Travelzoo (NASDAQ:TZOOGet Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Rumble-106.91%-42.47%-34.74%
Travelzoo0.51%-10.40%1.00%

Earnings and Valuation

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Rumble$100.62 million25.30-$81.83 million($0.43)-13.58
Travelzoo$91.72 million0.81$4.70 million$0.03241.00

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

Analyst Ratings

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

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Rumble10001.00
Travelzoo11202.25

Travelzoo has a consensus target price of $14.83, indicating a potential upside of 105.16%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts clearly believe Travelzoo is more favorable than Rumble.

Insider & Institutional Ownership

26.2% of Rumble shares are owned by institutional investors. Comparatively, 27.4% of Travelzoo shares are owned by institutional investors. 45.1% of Rumble shares are owned by company insiders. Comparatively, 45.3% of Travelzoo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Rumble has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Summary

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

About Rumble

(Get Free Report)

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.

About Travelzoo

(Get Free Report)

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.