Head-To-Head Comparison: Levi Strauss & Co. (NYSE:LEVI) vs. Zumiez (NASDAQ:ZUMZ)

Zumiez (NASDAQ:ZUMZ) and Levi Strauss & Co. (NYSE:LEVI) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Valuation and Earnings

This table compares Zumiez and Levi Strauss & Co.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$900.25 million	0.46	-$1.71 million	($0.01)	-2,406.00
Levi Strauss & Co.	$6.36 billion	1.28	$210.60 million	$1.52	13.64

Levi Strauss & Co. has higher revenue and earnings than Zumiez. Zumiez is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Zumiez and Levi Strauss & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	1	2	0	0	1.67
Levi Strauss & Co.	0	4	10	0	2.71

Zumiez presently has a consensus price target of $18.00, suggesting a potential downside of 25.19%. Levi Strauss & Co. has a consensus price target of $26.42, suggesting a potential upside of 27.37%. Given Levi Strauss & Co.’s stronger consensus rating and higher probable upside, analysts plainly believe Levi Strauss & Co. is more favorable than Zumiez.

Profitability

This table compares Zumiez and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zumiez	0.06%	0.19%	0.09%
Levi Strauss & Co.	9.48%	27.92%	8.95%

Risk & Volatility

Zumiez has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Insider and Institutional Ownership

95.4% of Zumiez shares are owned by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are owned by institutional investors. 21.2% of Zumiez shares are owned by company insiders. Comparatively, 1.3% of Levi Strauss & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Levi Strauss & Co. beats Zumiez on 12 of the 14 factors compared between the two stocks.

About Zumiez

Zumiez Inc. operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times. It operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.