Comparing Zumiez (ZUMZ) & Vince (VNCE)

Vince (NYSE: VNCE) and Zumiez (NASDAQ:ZUMZ) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation & Earnings

This table compares Vince and Zumiez’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vince $272.58 million 0.59 $58.59 million N/A N/A
Zumiez $927.40 million 0.71 $26.80 million $1.10 23.41

Vince has higher earnings, but lower revenue than Zumiez.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Vince and Zumiez, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vince 0 0 0 0 N/A
Zumiez 0 4 2 0 2.33

Zumiez has a consensus target price of $24.80, suggesting a potential downside of 3.69%. Given Zumiez’s higher possible upside, analysts clearly believe Zumiez is more favorable than Vince.

Insider and Institutional Ownership

4.7% of Vince shares are held by institutional investors. Comparatively, 74.7% of Zumiez shares are held by institutional investors. 74.0% of Vince shares are held by insiders. Comparatively, 27.7% of Zumiez shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Vince and Zumiez’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vince 21.50% -387.17% -7.66%
Zumiez 3.01% 8.64% 5.96%

Volatility & Risk

Vince has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Zumiez has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Summary

Zumiez beats Vince on 7 of the 11 factors compared between the two stocks.

Vince Company Profile

Vince Holding Corp. engages in the design, merchandise, and sale of various luxury brand products in the United States and internationally. It operates through two segments, Wholesale and Direct-To-Consumer. The company offers a range of women's products, such as cashmere sweaters, silk blouses, leather and suede leggings and jackets, dresses, denims, pants, tanks, T-shirts, handbags, and outerwear under the Vince brand; and men's products comprising T-shirts, knit and woven tops, sweaters, denim, pants, blazers, outerwear, and leather jackets under the Vince brand. It also provides women's and men's footwear, apparel, and accessories. The company sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through Vince.com, an e-commerce platform; and to department stores and specialty stores. As of January 28, 2017, it operated 54 stores, including 40 company-operated full price retail stores and 14 company-operated outlet stores, as well as VINCE.com and e-commerce sites; and sold its products to consumers at approximately 2,300 distribution locations in 40 countries. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. Vince Holding Corp. was founded in 2002 and is based in New York, New York.

Zumiez Company Profile

Zumiez Inc., together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of February 3, 2018, the company operated 698 stores, including 607 stores in the United States, 50 stores in Canada, 34 stores in Europe, and 7 stores in Australia under the names of Zumiez, Blue Tomato, and Fast Times. It also operates zumiez.com, blue-tomato.com, and fasttimes.com.au e-commerce Websites. The company was founded in 1978 and is headquartered in Lynnwood, Washington.

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