Analyzing Zumiez (NASDAQ:ZUMZ) & Stage Stores (OTCMKTS:SSINQ)

Zumiez (NASDAQ:ZUMZ) and Stage Stores (OTCMKTS:SSINQ) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Zumiez and Stage Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zumiez	0.06%	0.19%	0.09%
Stage Stores	N/A	N/A	N/A

Valuation & Earnings

This table compares Zumiez and Stage Stores”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$889.20 million	0.39	-$1.71 million	($0.01)	-1,997.00
Stage Stores	N/A	N/A	N/A	N/A	N/A

Stage Stores has lower revenue, but higher earnings than Zumiez.

Institutional and Insider Ownership

95.5% of Zumiez shares are held by institutional investors. 21.2% of Zumiez shares are held by company insiders. Comparatively, 11.6% of Stage Stores shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations for Zumiez and Stage Stores, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	2	0	0	2.00
Stage Stores	0	0	0	0	0.00

Zumiez presently has a consensus price target of $18.00, indicating a potential downside of 9.86%. Given Stage Stores’ higher possible upside, analysts clearly believe Stage Stores is more favorable than Zumiez.

Summary

Zumiez beats Stage Stores on 7 of the 8 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 Stage Stores

Stage Stores, Inc. operates specialty department stores primarily in small towns and rural communities in the United States. The company sells moderately priced and brand name apparel, accessories, cosmetics, footwear, and home goods through its department stores, off-price stores, and e-commerce Website, as well as through private label credit card and loyalty programs. As of September 17, 2019, it operated 625 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores; and 158 GORDMANS off-price stores. The company was founded in 1988 and is headquartered in Houston, Texas. On May 10, 2020, Stage Stores, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on August 14, 2020.