Critical Comparison: Dingdong (Cayman) (NYSE:DDL) vs. Travelzoo (NASDAQ:TZOO)

Dingdong (Cayman) (NYSE:DDL) and Travelzoo (NASDAQ:TZOO) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

24.7% of Dingdong (Cayman) shares are owned by institutional investors. Comparatively, 27.4% of Travelzoo shares are owned by institutional investors. 29.8% of Dingdong (Cayman) shares are owned by company insiders. Comparatively, 45.3% of Travelzoo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Dingdong (Cayman) and Travelzoo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dingdong (Cayman)	0	2	0	0	2.00
Travelzoo	0	2	2	0	2.50

Travelzoo has a consensus price target of $15.67, suggesting a potential upside of 46.01%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts plainly believe Travelzoo is more favorable than Dingdong (Cayman).

Profitability

This table compares Dingdong (Cayman) and Travelzoo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dingdong (Cayman)	1.54%	36.51%	5.54%
Travelzoo	4.32%	-101.85%	8.49%

Risk and Volatility

Dingdong (Cayman) has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dingdong (Cayman) and Travelzoo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dingdong (Cayman)	$3.42 billion	0.17	$31.70 million	$0.24	10.06
Travelzoo	$91.72 million	1.20	$4.70 million	$0.36	29.81

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

Summary

Travelzoo beats Dingdong (Cayman) on 11 of the 14 factors compared between the two stocks.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, 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.