Alphabet (NASDAQ:GOOGL) vs. Travelzoo (NASDAQ:TZOO) Head-To-Head Contrast

Travelzoo (NASDAQ:TZOO) and Alphabet (NASDAQ:GOOGL) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Insider and Institutional Ownership

27.4% of Travelzoo shares are held by institutional investors. Comparatively, 40.0% of Alphabet shares are held by institutional investors. 45.3% of Travelzoo shares are held by company insiders. Comparatively, 11.6% of Alphabet shares are held by company 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.

Risk and Volatility

Travelzoo has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Travelzoo	-1.82%	-9.35%	-3.52%
Alphabet	50.03%	43.33%	29.24%

Valuation and Earnings

This table compares Travelzoo and Alphabet”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	0.58	$4.70 million	($0.18)	-28.83
Alphabet	$402.84 billion	9.12	$132.17 billion	$19.16	15.59

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

Analyst Recommendations

This is a summary of current ratings for Travelzoo and Alphabet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travelzoo	1	1	2	0	2.25
Alphabet	0	5	45	5	3.00

Travelzoo presently has a consensus target price of $13.83, suggesting a potential upside of 166.54%. Alphabet has a consensus target price of $412.51, suggesting a potential upside of 38.10%. Given Travelzoo’s higher probable upside, equities research analysts clearly believe Travelzoo is more favorable than Alphabet.

Summary

Alphabet beats Travelzoo on 12 of the 15 factors compared between the two stocks.

About Travelzoo

Travelzoo (NASDAQ: TZOO) is an internet media company that publishes travel and entertainment offers for consumers. Its platform features deals on hotels, vacations, cruises, flights, restaurants, spas, events and other leisure activities, connecting participating businesses with an audience of members and website visitors. The company’s products and services include its travel and local-deals publications, destination and deal guides, and online tools that help users discover and compare travel opportunities.

About Alphabet

Alphabet Inc. is a technology holding company whose largest business is Google. Founded in 1998 by Larry Page and Sergey Brin, Google became part of Alphabet when the company reorganized its businesses under the holding-company structure in 2015. Google’s products and services include Search, YouTube, Android, Chrome, Google Maps, Google Play and Google Cloud. The company also generates revenue from digital advertising and offers devices, subscriptions and artificial intelligence products and services.