Financial Comparison: Travelzoo (NASDAQ:TZOO) vs. Token Cat (NASDAQ:TC)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Token Cat and Travelzoo, as reported by MarketBeat.com.

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

Travelzoo has a consensus price target of $19.67, suggesting a potential upside of 175.06%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts plainly believe Travelzoo is more favorable than Token Cat.

Risk & Volatility

Token Cat has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

8.9% of Token Cat shares are held by institutional investors. Comparatively, 27.4% of Travelzoo shares are held by institutional investors. 0.5% of Token Cat shares are held by company insiders. Comparatively, 43.2% of Travelzoo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Token Cat	$6.74 million	3.71	-$25.76 million	N/A	N/A
Travelzoo	$83.90 million	0.93	$13.56 million	$0.64	11.17

Travelzoo has higher revenue and earnings than Token Cat.

Summary

Travelzoo beats Token Cat on 10 of the 12 factors compared between the two stocks.

About Token Cat

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

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.