Head-To-Head Analysis: LMP Automotive (OTCMKTS:LMPX) and Travelzoo (NASDAQ:TZOO)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for LMP Automotive and Travelzoo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LMP Automotive	0	0	0	0	0.00
Travelzoo	0	2	3	0	2.60

Travelzoo has a consensus price target of $19.67, indicating a potential upside of 265.55%. Given Travelzoo’s stronger consensus rating and higher probable upside, analysts clearly believe Travelzoo is more favorable than LMP Automotive.

Insider & Institutional Ownership

27.4% of Travelzoo shares are held by institutional investors. 38.7% of LMP Automotive shares are held by insiders. Comparatively, 43.2% of Travelzoo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LMP Automotive	N/A	N/A	N/A	N/A	N/A
Travelzoo	$83.90 million	0.70	$13.56 million	$0.64	8.41

Travelzoo has higher revenue and earnings than LMP Automotive.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LMP Automotive	N/A	N/A	N/A
Travelzoo	8.66%	-446.70%	15.82%

Risk & Volatility

LMP Automotive has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

Travelzoo beats LMP Automotive on 9 of the 10 factors compared between the two stocks.

About LMP Automotive

LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. It primarily buys pre-owned automobiles primarily through auctions or directly from other automobile dealers, as well as new automobiles from manufacturers and distributors at fleet rates. The company was incorporated in 2017 and is headquartered in Fort Lauderdale, Florida.

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.