Critical Analysis: Travelzoo (NASDAQ:TZOO) versus Creatd (OTCMKTS:CRTDD)

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

Valuation and Earnings

This table compares Creatd and Travelzoo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Creatd	$1.92 million	0.68	-$24.23 million	($430.20)	-0.00
Travelzoo	$91.72 million	0.80	$4.70 million	$0.03	237.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Creatd	N/A	N/A	N/A
Travelzoo	0.51%	-10.40%	1.00%

Analyst Ratings

This is a summary of current ratings for Creatd and Travelzoo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Creatd	0	0	0	0	0.00
Travelzoo	1	1	2	0	2.25

Travelzoo has a consensus price target of $14.83, suggesting a potential upside of 108.33%. Given Travelzoo’s stronger consensus rating and higher possible upside, analysts clearly believe Travelzoo is more favorable than Creatd.

Insider and Institutional Ownership

8.2% of Creatd shares are owned by institutional investors. Comparatively, 27.4% of Travelzoo shares are owned by institutional investors. 11.8% of Creatd shares are owned by company insiders. Comparatively, 45.3% of Travelzoo shares are owned by company 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

Creatd has a beta of 7.23, meaning that its share price is 623% more volatile than the S&P 500. Comparatively, Travelzoo has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Summary

Travelzoo beats Creatd on 12 of the 14 factors compared between the two stocks.

About Creatd

Creatd, Inc. empowers creators, brands, and entrepreneurs through its technology and partnership. The company’s proprietary technology platforms and complementary digital businesses include Vocal for Brands, Seller’s Choice, and the intellectual property inherent in Vocal’s owned and operated digital communities and future acquisitions. The company was founded by Jeremy Phillip Frommer and Rick Schwartz on December 30, 1999 and is headquartered in New York, NY.

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.