Zalando (OTCMKTS:ZLNDY – Get Free Report) and Citi Trends (NASDAQ:CTRN – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Profitability
This table compares Zalando and Citi Trends’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zalando | 2.49% | 10.19% | 3.37% |
| Citi Trends | -2.13% | -21.07% | -5.42% |
Earnings & Valuation
This table compares Zalando and Citi Trends”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zalando | $11.44 billion | 0.64 | $271.71 million | $0.57 | 24.40 |
| Citi Trends | $753.08 million | 0.39 | -$43.17 million | ($2.00) | -17.82 |
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 and Risk
Zalando has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Citi Trends has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Zalando and Citi Trends, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zalando | 1 | 1 | 2 | 1 | 2.60 |
| Citi Trends | 0 | 0 | 2 | 0 | 3.00 |
Citi Trends has a consensus price target of $39.50, suggesting a potential upside of 10.86%. Given Citi Trends’ stronger consensus rating and higher possible upside, analysts plainly believe Citi Trends is more favorable than Zalando.
Summary
Zalando beats Citi Trends on 9 of the 12 factors compared between the two stocks.
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.
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.
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