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

Earnings and Valuation

This table compares Travelzoo and Adaptive Medias’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Travelzoo $111.41 million 0.72 $4.16 million $0.34 20.82
Adaptive Medias N/A N/A N/A N/A N/A

Travelzoo has higher revenue and earnings than Adaptive Medias.

Institutional and Insider Ownership

37.4% of Travelzoo shares are held by institutional investors. 55.6% of Travelzoo shares are held 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Travelzoo and Adaptive Medias, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelzoo 0 0 1 0 3.00
Adaptive Medias 0 0 0 0 N/A

Travelzoo currently has a consensus target price of $7.50, suggesting a potential upside of 5.93%. Given Travelzoo’s higher probable upside, equities analysts clearly believe Travelzoo is more favorable than Adaptive Medias.

Profitability

This table compares Travelzoo and Adaptive Medias’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelzoo -16.47% -76.53% -11.53%
Adaptive Medias N/A N/A N/A

Risk and Volatility

Travelzoo has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Adaptive Medias has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.

Summary

Travelzoo beats Adaptive Medias on 6 of the 9 factors compared between the two stocks.

About Travelzoo

Travelzoo provides travel, entertainment, and local deals from travel and entertainment companies, and local businesses in the Asia Pacific, Europe, and North America. Its publications and products include Travelzoo Website; Travelzoo iPhone and Android apps; Travelzoo Top 20 email newsletter; and Newsflash email alert service. The company also operates the Travelzoo Network, a network of third-party Websites that list travel deals published by the company; and Local Deals and Getaway listings, which allow its members to purchase vouchers for deals from local businesses, such as spas, hotels, and restaurants. 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 founded in 1998 and is headquartered in New York, New York.

About Adaptive Medias

Adaptive Medias, Inc., a programmatic audience and content monetization company, provides digital video and mobile solutions for Website owners, app developers, and video publishers for optimize content through advertising. The company provides programmatic and real time bidding advertising solutions across mobile, video, and display, as well as a business-to-business digital video content management platform SaaS. Its platform provides a video player for publishers to offer supplement video libraries. The company provides a foundation for publishers and developers to engage brand advertisers through a multi-channel approach that delivers ads in various devices. The company was formerly known as Mimvi, Inc. and changed its name to Adaptive Medias, Inc. in November 2013. Adaptive Medias, Inc. was founded in 2007 and is headquartered in Irvine, California.

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