Reviewing Zumiez (ZUMZ) & Its Competitors

Zumiez (NASDAQ:ZUMZ) is one of 285 public companies in the “Specialty Retail” industry, but how does it weigh in compared to its rivals? We will compare Zumiez to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Profitability

This table compares Zumiez and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zumiez	1.36%	3.71%	1.78%
Zumiez Competitors	-3.59%	-13.85%	3.22%

Insider & Institutional Ownership

95.5% of Zumiez shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 24.3% of Zumiez shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Zumiez and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	3	0	0	2.00
Zumiez Competitors	3695	15631	21649	593	2.46

As a group, “Specialty Retail” companies have a potential upside of 5.62%. Given Zumiez’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Zumiez has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Zumiez and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zumiez	$929.06 million	$13.38 million	19.57
Zumiez Competitors	$7.05 billion	$386.51 million	31.39

Zumiez’s rivals have higher revenue and earnings than Zumiez. Zumiez is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Zumiez has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Zumiez’s rivals have a beta of 1.91, meaning that their average stock price is 91% more volatile than the S&P 500.

Summary

Zumiez rivals beat Zumiez on 9 of the 13 factors compared.

Zumiez Company Profile

Zumiez is a specialty retailer focused on apparel, footwear, accessories and equipment associated with action sports and youth culture. Its merchandise includes products for skateboarding, snowboarding, surfing and other board sports, as well as casual clothing and accessories. The company sells products through physical stores and e-commerce websites. Its retail operations serve customers in North America, Europe and Australia, with stores operating under names including Zumiez and Blue Tomato.