Critical Analysis: Global-e Online (NASDAQ:GLBE) versus Travelzoo (NASDAQ:TZOO)

Travelzoo (NASDAQ:TZOOGet Free Report) and Global-e Online (NASDAQ:GLBEGet Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

27.4% of Travelzoo shares are owned by institutional investors. Comparatively, 94.6% of Global-e Online shares are owned by institutional investors. 45.3% of Travelzoo shares are owned by insiders. Comparatively, 11.6% of Global-e Online shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Travelzoo has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Global-e Online has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Travelzoo and Global-e Online, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelzoo 0 2 2 0 2.50
Global-e Online 1 1 12 1 2.87

Travelzoo currently has a consensus price target of $15.67, suggesting a potential upside of 43.21%. Global-e Online has a consensus price target of $44.33, suggesting a potential upside of 16.30%. Given Travelzoo’s higher probable upside, equities analysts plainly believe Travelzoo is more favorable than Global-e Online.

Earnings & Valuation

This table compares Travelzoo and Global-e Online”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Travelzoo $91.72 million 1.23 $4.70 million $0.36 30.39
Global-e Online $962.20 million 6.72 $68.27 million $0.65 58.65

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

Profitability

This table compares Travelzoo and Global-e Online’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelzoo 4.32% -101.85% 8.49%
Global-e Online 11.37% 12.64% 8.86%

Summary

Global-e Online beats Travelzoo on 12 of the 15 factors compared between the two stocks.

About Travelzoo

(Get Free Report)

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 Global-e Online

(Get Free Report)

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

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