Analyzing Trivago (NASDAQ:TRVG) and Phunware (NASDAQ:PHUN)

Phunware (NASDAQ:PHUN) and Trivago (NASDAQ:TRVG) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Profitability

This table compares Phunware and Trivago’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Phunware -80.97% -266.76% -44.72%
Trivago -26.40% 0.33% 0.26%

Volatility & Risk

Phunware has a beta of 16.05, suggesting that its stock price is 1,505% more volatile than the S&P 500. Comparatively, Trivago has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Phunware and Trivago, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phunware 0 1 1 0 2.50
Trivago 0 6 2 0 2.25

Phunware presently has a consensus target price of $4.00, indicating a potential upside of 208.88%. Trivago has a consensus target price of $2.29, indicating a potential upside of 18.19%. Given Phunware’s stronger consensus rating and higher possible upside, research analysts plainly believe Phunware is more favorable than Trivago.

Valuation and Earnings

This table compares Phunware and Trivago’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Phunware $19.15 million 2.77 -$12.87 million ($0.35) -3.70
Trivago $939.36 million 0.73 $19.22 million $0.06 32.33

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

Insider and Institutional Ownership

23.3% of Phunware shares are held by institutional investors. Comparatively, 10.5% of Trivago shares are held by institutional investors. 22.9% of Phunware shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Trivago beats Phunware on 8 of the 14 factors compared between the two stocks.

About Phunware

Phunware Inc., together with its subsidiaries, provides Multiscreen-as-a-Service (Maas) and Data-as-a-Service (DaaS) enterprise software platform for mobile devices. Its platform enables brands to engage, manage, and monetize their mobile application portfolios. The company offers Cloud-Based Mobile Software Development Kits (SDKs), which include location-based services, mobile engagement, content management, messaging, advertising, and analytics; and mobile application framework of pre-integrated iOS and Android software modules for building in-house or channel-based mobile application solutions. It also provides cloud-based vertical solutions of pre-integrated iOS and Android mobile application portfolios for healthcare, retail, media, real estate and hospitality, sports, aviation, and other sectors; and knowledge graph and data solutions which allows for real-time mobile audience targeting, reach, engagement, and monetization for 1:1 insights and interactions. The company was founded in 2009 and is headquartered in Austin, Texas.

About Trivago

trivago N.V., together with its subsidiaries, operates as a hotel and accommodation search platform. It offers online meta-search for hotels by facilitating consumers' search for hotel accommodation through online travel agents, hotel chains, and independent hotels. The company provides access to its platform through 55 localized Websites and apps in 33 languages. As of December 31, 2018, its hotel search platform offered access to approximately 3.0 million hotels and other types of accommodation worldwide. The company was founded in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Group, Inc.

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