Financial Survey: Yunji (NASDAQ:YJ) & Travelzoo (NASDAQ:TZOO)

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

Insider & Institutional Ownership

27.4% of Travelzoo shares are held by institutional investors. 43.2% of Travelzoo shares are held by company insiders. Comparatively, 45.3% of Yunji shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Travelzoo and Yunji”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	0.70	$13.56 million	$0.64	8.39
Yunji	$342.14 million	0.02	-$16.86 million	($3.44)	-0.41

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

Profitability

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

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Travelzoo and Yunji, as provided by MarketBeat.com.

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

Travelzoo currently has a consensus price target of $19.67, indicating a potential upside of 266.23%. Given Travelzoo’s stronger consensus rating and higher possible upside, research analysts plainly believe Travelzoo is more favorable than Yunji.

Volatility & Risk

Travelzoo has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Yunji has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Summary

Travelzoo beats Yunji on 11 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 Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.