Zumiez (NASDAQ: ZUMZ) and Tailored Brands (NYSE:TLRD) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Zumiez has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Tailored Brands has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Zumiez and Tailored Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zumiez 0 5 1 0 2.17
Tailored Brands 0 4 4 0 2.50

Zumiez presently has a consensus target price of $20.29, indicating a potential downside of 4.98%. Tailored Brands has a consensus target price of $17.33, indicating a potential downside of 0.61%. Given Tailored Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Tailored Brands is more favorable than Zumiez.

Insider & Institutional Ownership

74.8% of Zumiez shares are owned by institutional investors. 27.5% of Zumiez shares are owned by company insiders. Comparatively, 2.0% of Tailored Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Tailored Brands pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Zumiez does not pay a dividend. Tailored Brands pays out 60.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Zumiez and Tailored Brands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zumiez $836.27 million 0.64 $25.90 million $1.02 20.93
Tailored Brands $3.38 billion 0.25 $24.95 million $1.19 14.66

Zumiez has higher earnings, but lower revenue than Tailored Brands. Tailored Brands is trading at a lower price-to-earnings ratio than Zumiez, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zumiez and Tailored Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zumiez 2.84% 7.99% 5.45%
Tailored Brands 1.79% -108.13% 4.41%

Summary

Zumiez beats Tailored Brands on 9 of the 16 factors compared between the two stocks.

Zumiez Company Profile

Zumiez Inc., including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. The Company operates under the names Zumiez, Blue Tomato and Fast Times. Additionally, it operates e-commerce Websites at www.zumiez.com, www.blue-tomato.com and www.fasttimes.com.au. It offers various categories of shoes, such as skate shoes, casual shoes, high tops, sandals, slip ons, runners, boots and shoe accessories, such as socks. It also offers flannels, baseball tees, hoodies, baseball hats, windbreakers, shirts, jackets, jerseys, sweaters and tanks, among others. For women, it offers t-shirts, tank tops, hoodies and sweatshirts, cardigans, jackets, skirts, jeans, joggers, leggings and dresses, among others. It provides various accessories, including watches, sunglasses, bracelets, earrings, rings, beanies, hats, belts, wallets and phone accessories

Tailored Brands Company Profile

Tailored Brands, Inc. is a holding company of The Men’s Wearhouse, Inc. The Company is a specialty apparel retailer offering suits, suit separates, sport coats, slacks, business casual, sportswear, outerwear, dress shirts, shoes and accessories for men and tuxedo and suit rental product. It operates through two segments: Retail and Corporate Apparel. The Retail segment includes four retail merchandising brands: Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A. Bank, Moores, and K&G. Specialty apparel merchandise offered by its retail merchandising concepts include suits, suit separates, sport coats, business casual, sportswear, outerwear, dress shirts, shoes and accessories for men. Women’s career apparel, sportswear and accessories, such as shoes and children’s apparel are offered at its K&G stores. The Corporate Apparel segment includes corporate apparel and uniform operations conducted by Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.

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