Urban Outfitters (NASDAQ:URBN – Get Free Report) and Zumiez (NASDAQ:ZUMZ – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Risk & Volatility
Urban Outfitters has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Zumiez has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Urban Outfitters and Zumiez”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Urban Outfitters | $6.17 billion | 0.89 | $464.92 million | $5.07 | 12.12 |
| Zumiez | $929.06 million | 0.41 | $13.38 million | $0.86 | 25.97 |
Urban Outfitters has higher revenue and earnings than Zumiez. Urban Outfitters 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 recent ratings and target prices for Urban Outfitters and Zumiez, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Urban Outfitters | 1 | 8 | 8 | 0 | 2.41 |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
Urban Outfitters currently has a consensus target price of $86.25, indicating a potential upside of 40.31%. Zumiez has a consensus target price of $18.00, indicating a potential downside of 19.39%. Given Urban Outfitters’ stronger consensus rating and higher possible upside, analysts plainly believe Urban Outfitters is more favorable than Zumiez.
Institutional & Insider Ownership
77.6% of Urban Outfitters shares are held by institutional investors. Comparatively, 95.5% of Zumiez shares are held by institutional investors. 31.6% of Urban Outfitters shares are held by company insiders. Comparatively, 21.2% of Zumiez 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.
Profitability
This table compares Urban Outfitters and Zumiez’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Urban Outfitters | 7.54% | 18.96% | 10.46% |
| Zumiez | 1.44% | 3.91% | 1.90% |
Summary
Urban Outfitters beats Zumiez on 12 of the 14 factors compared between the two stocks.
About Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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.
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