IZEA Worldwide (NASDAQ:IZEA) and Travelzoo (NASDAQ:TZOO) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

9.7% of IZEA Worldwide shares are held by institutional investors. Comparatively, 37.4% of Travelzoo shares are held by institutional investors. 7.2% of IZEA Worldwide shares are held by company insiders. Comparatively, 55.6% of Travelzoo 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.

Valuation & Earnings

This table compares IZEA Worldwide and Travelzoo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IZEA Worldwide $18.96 million 2.79 -$7.29 million ($0.29) -4.91
Travelzoo $111.41 million 0.62 $4.16 million $0.34 18.03

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IZEA Worldwide 0 1 1 0 2.50
Travelzoo 0 0 1 0 3.00

IZEA Worldwide currently has a consensus target price of $0.50, suggesting a potential downside of 64.91%. Travelzoo has a consensus target price of $7.50, suggesting a potential upside of 22.35%. Given Travelzoo’s stronger consensus rating and higher probable upside, analysts plainly believe Travelzoo is more favorable than IZEA Worldwide.

Profitability

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

Net Margins Return on Equity Return on Assets
IZEA Worldwide -61.41% -57.08% -31.39%
Travelzoo -16.47% -76.53% -11.53%

Risk and Volatility

IZEA Worldwide has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Summary

Travelzoo beats IZEA Worldwide on 9 of the 13 factors compared between the two stocks.

About IZEA Worldwide

IZEA Worldwide, Inc. creates and operates online marketplaces that connect marketers and content creators. Its technology solutions enable the management of content workflow, creator search and targeting, bidding, analytics, and payment processing. The company engages creator for influencer marketing campaigns, or to create content for the marketers' use and distribution. It primarily sells social sponsorship and content campaigns through sales team and self-service platforms, as well as through distribution relationships, such as resellers, affiliates, and white label partners. The company was formerly known as IZEA, Inc. and changed its name to IZEA Worldwide, Inc. in August 2018. IZEA Worldwide, Inc. was founded in 2006 and is headquartered in Winter Park, Florida.

About Travelzoo

Travelzoo provides travel, entertainment, and local deals from travel and entertainment companies, and local businesses in the Asia Pacific, Europe, and North America. Its publications and products include Travelzoo Website; Travelzoo iPhone and Android apps; Travelzoo Top 20 email newsletter; and Newsflash email alert service. The company also operates the Travelzoo Network, a network of third-party Websites that list travel deals published by the company; and Local Deals and Getaway listings, which allow its members to purchase vouchers for deals from local businesses, such as spas, hotels, and restaurants. 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 founded in 1998 and is headquartered in New York, New York.

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