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

Earnings & Valuation

This table compares Tailored Brands and Zumiez’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tailored Brands $3.38 billion 0.25 $24.95 million $1.19 14.17
Zumiez $836.27 million 0.66 $25.90 million $0.97 22.47

Zumiez has lower revenue, but higher earnings than Tailored Brands. Tailored 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 breakdown of current recommendations and price targets for Tailored Brands and Zumiez, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tailored Brands 0 4 4 0 2.50
Zumiez 0 5 1 0 2.17

Tailored Brands presently has a consensus target price of $17.33, indicating a potential upside of 2.81%. Zumiez has a consensus target price of $18.57, indicating a potential downside of 14.81%. Given Tailored Brands’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Tailored Brands is more favorable than Zumiez.

Dividends

Tailored Brands pays an annual dividend of $0.72 per share and has a dividend yield of 4.3%. Zumiez does not pay a dividend. Tailored Brands pays out 60.5% of its earnings in the form of a dividend.

Volatility & Risk

Tailored Brands has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Zumiez has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Tailored Brands 1.79% -108.13% 4.41%
Zumiez 2.78% 7.83% 5.31%

Insider and Institutional Ownership

75.0% of Zumiez shares are held by institutional investors. 2.0% of Tailored Brands shares are held by insiders. Comparatively, 27.5% of Zumiez shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Zumiez beats Tailored Brands on 9 of the 16 factors compared between the two stocks.

About Tailored Brands

Tailored Brands, Inc. is a holding company of The Men’s Wearhouse, Inc. The Company is a specialty apparel retailer offering suits, suit separates, sport coats, slacks, business casual, sportswear, outerwear, dress shirts, shoes and accessories for men and tuxedo and suit rental product. It operates through two segments: Retail and Corporate Apparel. The Retail segment includes four retail merchandising brands: Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A. Bank, Moores, and K&G. Specialty apparel merchandise offered by its retail merchandising concepts include suits, suit separates, sport coats, business casual, sportswear, outerwear, dress shirts, shoes and accessories for men. Women’s career apparel, sportswear and accessories, such as shoes and children’s apparel are offered at its K&G stores. The Corporate Apparel segment includes corporate apparel and uniform operations conducted by Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.

About Zumiez

Zumiez Inc., including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. The Company operates under the names Zumiez, Blue Tomato and Fast Times. Additionally, it operates e-commerce Websites at www.zumiez.com, www.blue-tomato.com and www.fasttimes.com.au. It offers various categories of shoes, such as skate shoes, casual shoes, high tops, sandals, slip ons, runners, boots and shoe accessories, such as socks. It also offers flannels, baseball tees, hoodies, baseball hats, windbreakers, shirts, jackets, jerseys, sweaters and tanks, among others. For women, it offers t-shirts, tank tops, hoodies and sweatshirts, cardigans, jackets, skirts, jeans, joggers, leggings and dresses, among others. It provides various accessories, including watches, sunglasses, bracelets, earrings, rings, beanies, hats, belts, wallets and phone accessories

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