Travelzoo vs Expedia Which Should You Buy?

Travelzoo and Expedia Group are two prominent players in the online travel booking industry. Travelzoo, known for its exclusive travel deals and curated recommendations, offers a unique business model that focuses on quality over quantity. On the other hand, Expedia Group is a powerhouse in the industry, with a diverse portfolio of brands including Expedia, Hotwire, and Hotels.com. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors looking to capitalize on the booming travel industry.

Travelzoo or Expedia?

When comparing Travelzoo and Expedia, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Travelzoo and Expedia.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Travelzoo has a dividend yield of -%, while Expedia has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Travelzoo reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Expedia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Travelzoo P/E ratio at 17.04 and Expedia's P/E ratio at 22.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Travelzoo P/B ratio is -107.46 while Expedia's P/B ratio is 18.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Travelzoo has seen a 5-year revenue growth of -0.37%, while Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Travelzoo's ROE at 457.95% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.34 for Travelzoo and $184.47 for Expedia. Over the past year, Travelzoo's prices ranged from $7.12 to $20.85, with a yearly change of 192.84%. Expedia's prices fluctuated between $107.25 and $192.34, with a yearly change of 79.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.