Zumiez (NASDAQ:ZUMZ – Get Free Report) and Grabagun Digital (NYSE:PEW – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
Profitability
This table compares Zumiez and Grabagun Digital’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% |
| Grabagun Digital | -6.42% | -6.15% | -5.16% |
Institutional & Insider Ownership
95.5% of Zumiez shares are owned by institutional investors. Comparatively, 4.8% of Grabagun Digital shares are owned by institutional investors. 24.3% of Zumiez shares are owned by insiders. Comparatively, 27.8% of Grabagun Digital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Valuation and Earnings
This table compares Zumiez and Grabagun Digital”s gross 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 | 19.14 |
| Grabagun Digital | $96.45 million | 0.64 | -$2.51 million | ($0.23) | -9.11 |
Zumiez has higher revenue and earnings than Grabagun Digital. Grabagun Digital 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 recommendations and price targets for Zumiez and Grabagun Digital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
| Grabagun Digital | 1 | 0 | 1 | 0 | 2.00 |
Grabagun Digital has a consensus price target of $5.00, suggesting a potential upside of 138.66%. Given Grabagun Digital’s higher probable upside, analysts plainly believe Grabagun Digital is more favorable than Zumiez.
Summary
Zumiez beats Grabagun Digital on 9 of the 13 factors compared between the two stocks.
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 Grabagun Digital
GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.
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