Zumiez (NASDAQ:ZUMZ – Get Free Report) and Xcel Brands (NASDAQ:XELB – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Risk & Volatility
Zumiez has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Institutional & Insider Ownership
95.5% of Zumiez shares are held by institutional investors. Comparatively, 18.6% of Xcel Brands shares are held by institutional investors. 24.3% of Zumiez shares are held by insiders. Comparatively, 29.5% of Xcel Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zumiez | $929.06 million | 0.32 | $13.38 million | $0.86 | 20.22 |
| Xcel Brands | $4.94 million | 2.46 | -$17.46 million | ($4.65) | -0.43 |
Zumiez has higher revenue and earnings than Xcel Brands. Xcel 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 summary of recent ratings and target prices for Zumiez and Xcel Brands, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
| Xcel Brands | 1 | 0 | 1 | 0 | 2.00 |
Zumiez presently has a consensus target price of $18.00, indicating a potential upside of 3.51%. Xcel Brands has a consensus target price of $3.00, indicating a potential upside of 49.25%. Given Xcel Brands’ higher possible upside, analysts plainly believe Xcel Brands is more favorable than Zumiez.
Profitability
This table compares Zumiez and Xcel Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zumiez | 1.54% | 4.24% | 2.04% |
| Xcel Brands | -361.04% | -83.71% | -34.96% |
Summary
Zumiez beats Xcel Brands on 8 of the 13 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 Xcel Brands
Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.
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