Contrasting America’s Car-Mart (NASDAQ:CRMT) & Zumiez (NASDAQ:ZUMZ)

Zumiez (NASDAQ:ZUMZ – Get Free Report) and America’s Car-Mart (NASDAQ:CRMT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Zumiez and America’s Car-Mart, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zumiez 0 3 0 0 2.00
America’s Car-Mart 1 2 0 0 1.67

America’s Car-Mart has a consensus target price of $14.00, suggesting a potential upside of 1,208.41%. Given America’s Car-Mart’s higher possible upside, analysts plainly believe America’s Car-Mart is more favorable than Zumiez.

Institutional & Insider Ownership

95.5% of Zumiez shares are owned by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are owned by institutional investors. 24.3% of Zumiez shares are owned by insiders. Comparatively, 18.4% of America’s Car-Mart shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Zumiez and America’s Car-Mart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zumiez 1.36% 3.71% 1.78%
America’s Car-Mart -18.21% -15.19% -4.73%

Volatility & Risk

Zumiez has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Valuation and Earnings

This table compares Zumiez and America’s Car-Mart”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zumiez $929.06 million 0.23 $13.38 million $0.72 19.58
America’s Car-Mart $1.28 billion 0.01 -$139.11 million ($23.80) -0.04

Zumiez has higher earnings, but lower revenue than America’s Car-Mart. America’s Car-Mart is trading at a lower price-to-earnings ratio than Zumiez, indicating that it is currently the more affordable of the two stocks.

Summary

Zumiez beats America’s Car-Mart on 10 of the 13 factors compared between the two stocks.

About Zumiez

(Get Free Report)

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 America’s Car-Mart

(Get Free Report)

America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.

Receive News & Ratings for Zumiez Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zumiez and related companies with MarketBeat.com's FREE daily email newsletter.