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

Dividends

Tailored Brands pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Zumiez does not pay a dividend. Tailored Brands pays out 52.9% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Tailored Brands 2.07% -137.16% 4.62%
Zumiez 2.84% 7.99% 5.45%

Institutional and Insider Ownership

74.7% of Zumiez shares are owned by institutional investors. 2.0% of Tailored Brands shares are owned by company insiders. Comparatively, 27.5% of Zumiez shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tailored Brands $3.38 billion 0.30 $24.95 million $1.36 15.20
Zumiez $836.27 million 0.63 $25.90 million $1.02 20.54

Zumiez has lower revenue, but higher earnings 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tailored Brands and Zumiez, as provided by MarketBeat.

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

Tailored Brands presently has a consensus target price of $17.33, indicating a potential downside of 16.14%. Zumiez has a consensus target price of $20.29, indicating a potential downside of 3.17%. Given Zumiez’s higher possible upside, analysts plainly believe Zumiez is more favorable than Tailored Brands.

Risk and Volatility

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

Summary

Zumiez beats Tailored Brands on 10 of the 16 factors compared between the two stocks.

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.

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

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