Kering (OTCMKTS:PPRUY) & Zumiez (NASDAQ:ZUMZ) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zumiez	1.54%	4.24%	2.05%
Kering	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Zumiez and Kering, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	1	2	0	0	1.67
Kering	1	6	2	0	2.11

Zumiez currently has a consensus price target of $18.00, indicating a potential upside of 1.87%. Given Zumiez’s higher possible upside, equities research analysts clearly believe Zumiez is more favorable than Kering.

Valuation & Earnings

This table compares Zumiez and Kering”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$929.06 million	0.32	$13.38 million	$0.83	21.29
Kering	$16.60 billion	2.08	$81.46 million	N/A	N/A

Kering has higher revenue and earnings than Zumiez.

Risk and Volatility

Zumiez has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Kering has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Institutional and Insider Ownership

95.5% of Zumiez shares are owned by institutional investors. Comparatively, 1.0% of Kering shares are owned by institutional investors. 24.3% of Zumiez shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 Kering

Kering SA manages the development of a series of renowned houses in fashion, leather goods and jewelry in France, the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company offers ready-to-wear products apparel and accessories for men and women. It also offers leather goods and shoes; watches and jewelry; eyewear products; and fragrances and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, Kering Beauté, and Kering Eyewear brands. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.