Analyzing Travelzoo (NASDAQ:TZOO) & Chewy (NYSE:CHWY)

Travelzoo (NASDAQ:TZOO) and Chewy (NYSE:CHWY) 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, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Travelzoo	12.32%	1,186.62%	21.51%
Chewy	3.21%	35.04%	3.89%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Travelzoo and Chewy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travelzoo	0	0	3	0	3.00
Chewy	0	6	18	1	2.80

Travelzoo currently has a consensus price target of $21.50, indicating a potential upside of 123.26%. Chewy has a consensus price target of $43.94, indicating a potential upside of 4.06%. Given Travelzoo’s stronger consensus rating and higher probable upside, analysts plainly believe Travelzoo is more favorable than Chewy.

Institutional & Insider Ownership

27.4% of Travelzoo shares are owned by institutional investors. Comparatively, 93.1% of Chewy shares are owned by institutional investors. 43.2% of Travelzoo shares are owned by insiders. Comparatively, 0.4% of Chewy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Travelzoo and Chewy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travelzoo	$83.90 million	1.26	$13.56 million	$0.89	10.82
Chewy	$12.10 billion	1.45	$392.74 million	$0.89	47.45

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

Risk & Volatility

Travelzoo has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Chewy has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Summary

Chewy beats Travelzoo on 8 of the 14 factors compared between the two stocks.

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.

About Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.