Reviewing Prosus (OTCMKTS:PROSY) & Travelzoo (NASDAQ:TZOO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Travelzoo	4.98%	-132.89%	9.75%
Prosus	N/A	N/A	N/A

Risk & Volatility

Travelzoo has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Prosus has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares Travelzoo and Prosus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travelzoo	$91.72 million	0.74	$4.70 million	$0.38	16.29
Prosus	$6.17 billion	3.76	$12.37 billion	N/A	N/A

Prosus has higher revenue and earnings than Travelzoo.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travelzoo	1	1	3	0	2.40
Prosus	0	0	3	0	3.00

Travelzoo presently has a consensus price target of $18.00, indicating a potential upside of 190.79%. Given Travelzoo’s higher possible upside, analysts plainly believe Travelzoo is more favorable than Prosus.

Insider and Institutional Ownership

27.4% of Travelzoo shares are owned by institutional investors. Comparatively, 0.0% of Prosus shares are owned by institutional investors. 45.3% of Travelzoo shares are owned by company insiders. Comparatively, 0.5% of Prosus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Travelzoo beats Prosus on 6 of the 11 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 Prosus

Prosus N.V. engages in the e-commerce and internet businesses in Asia, Europe, Latin America, North America, and internationally. It operates internet platforms, such as classifieds, payments and fintech, food delivery, education technology, etail, ventures, social, and other internet platforms. The company was formerly known as Myriad International Holdings N.V. and changed its name to Prosus N.V. in August 2019. Prosus N.V. was incorporated in 1994 and is headquartered in Amsterdam, the Netherlands. Prosus N.V. operates as a subsidiary of Naspers Limited.