Citi Trends (NASDAQ:CTRN) and Zalando (OTCMKTS:ZLNDY) Head to Head Comparison

Citi Trends (NASDAQ:CTRN) and Zalando (OTCMKTS:ZLNDY) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Earnings & Valuation

This table compares Citi Trends and Zalando”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citi Trends	$753.08 million	0.40	-$43.17 million	($4.67)	-7.81
Zalando	$11.44 billion	0.66	$271.71 million	$0.57	24.95

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

Volatility & Risk

Citi Trends has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Citi Trends and Zalando, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citi Trends	0	0	2	0	3.00
Zalando	1	1	2	1	2.60

Citi Trends presently has a consensus price target of $39.50, suggesting a potential upside of 8.32%. Given Citi Trends’ stronger consensus rating and higher possible upside, equities analysts plainly believe Citi Trends is more favorable than Zalando.

Profitability

This table compares Citi Trends and Zalando’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citi Trends	-2.13%	-21.07%	-5.42%
Zalando	2.49%	10.19%	3.37%

Summary

Zalando beats Citi Trends on 9 of the 12 factors compared between the two stocks.

About Citi Trends

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.