Head to Head Contrast: Travelzoo (NASDAQ:TZOO) and Vivid Seats (NASDAQ:SEAT)

Travelzoo (NASDAQ:TZOO – Get Free Report) and Vivid Seats (NASDAQ:SEAT – Get Free Report) are both small-cap communication services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Travelzoo and Vivid Seats, as provided by MarketBeat.

Travelzoo presently has a consensus price target of $13.83, indicating a potential upside of 130.56%. Vivid Seats has a consensus price target of $10.27, indicating a potential upside of 108.67%. Given Travelzoo’s higher probable upside, analysts clearly believe Travelzoo is more favorable than Vivid Seats.

Earnings and Valuation

This table compares Travelzoo and Vivid Seats”s top-line revenue, earnings per share (EPS) and valuation.

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

Insider & Institutional Ownership

27.4% of Travelzoo shares are owned by institutional investors. Comparatively, 39.9% of Vivid Seats shares are owned by institutional investors. 45.3% of Travelzoo shares are owned by insiders. Comparatively, 60.5% of Vivid Seats shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Travelzoo has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Vivid Seats has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Travelzoo and Vivid Seats’ net margins, return on equity and return on assets.

Summary

Travelzoo beats Vivid Seats on 9 of the 12 factors compared between the two stocks.

About Travelzoo

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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.

About Vivid Seats

(Get Free Report)

Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.