Cerner (NASDAQ:CERN) and Travelzoo (NASDAQ:TZOO) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
This table compares Cerner and Travelzoo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Cerner has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Insider and Institutional Ownership
80.7% of Cerner shares are held by institutional investors. Comparatively, 38.4% of Travelzoo shares are held by institutional investors. 0.8% of Cerner shares are held by insiders. Comparatively, 55.6% of Travelzoo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Cerner and Travelzoo’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cerner||$5.69 billion||3.80||$529.45 million||$2.41||28.74|
|Travelzoo||$111.32 million||0.86||$4.66 million||N/A||N/A|
Cerner has higher revenue and earnings than Travelzoo.
This is a breakdown of recent ratings and target prices for Cerner and Travelzoo, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cerner presently has a consensus price target of $78.81, indicating a potential upside of 13.77%. Given Cerner’s higher probable upside, equities analysts plainly believe Cerner is more favorable than Travelzoo.
Cerner beats Travelzoo on 9 of the 12 factors compared between the two stocks.
Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. It also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and EHR agnostic platform, CareAware that facilitates connectivity of health care devices to EHRs. In addition, the company offers a portfolio of clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions. Further, it provides tech-enabled services, such as implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs, and third-party administrator services; and complementary hardware and devices for third parties. The company serves integrated integrated delivery networks, physician groups and networks, managed care organizations, hospitals, medical centers, reference laboratories, home health agencies, blood banks, imaging centers, pharmacies, pharmaceutical manufacturers, employers, governments and public health organizations. It has a strategic collaboration with Christiana Care Health System to provide a weight loss surgery program. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.
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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