Travelzoo (NASDAQ:TZOO) and QVC Group (NASDAQ:QVCGA) Head to Head Survey

QVC Group (NASDAQ:QVCGA) and Travelzoo (NASDAQ:TZOO) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Risk and Volatility

QVC Group has a beta of 2.64, suggesting that its share price is 164% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QVC Group	$10.04 billion	0.01	-$1.29 billion	($460.35)	-0.02
Travelzoo	$83.90 million	0.91	$13.56 million	$0.64	10.95

Travelzoo has lower revenue, but higher earnings than QVC Group. QVC Group 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

64.1% of QVC Group shares are owned by institutional investors. Comparatively, 27.4% of Travelzoo shares are owned by institutional investors. 12.4% of QVC Group shares are owned by company insiders. Comparatively, 43.2% of Travelzoo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QVC Group	-38.83%	N/A	-15.22%
Travelzoo	8.66%	-446.70%	15.82%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for QVC Group and Travelzoo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QVC Group	1	0	0	0	1.00
Travelzoo	0	2	3	0	2.60

Travelzoo has a consensus price target of $19.67, suggesting a potential upside of 180.55%. Given Travelzoo’s stronger consensus rating and higher probable upside, analysts clearly believe Travelzoo is more favorable than QVC Group.

Summary

Travelzoo beats QVC Group on 10 of the 14 factors compared between the two stocks.

About QVC Group

QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.

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.