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 superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Institutional and Insider Ownership
95.5% of Zumiez shares are held by institutional investors. Comparatively, 4.8% of Grabagun Digital shares are held by institutional investors. 24.3% of Zumiez shares are held by company insiders. Comparatively, 27.8% of Grabagun Digital shares are held by company 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.
Valuation & Earnings
This table compares Zumiez and Grabagun Digital”s revenue, earnings per share 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 | 19.07 |
| Grabagun Digital | $96.45 million | 0.61 | -$2.51 million | ($0.23) | -8.67 |
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 summary of current ratings for Zumiez and Grabagun Digital, as provided by MarketBeat.com.
| 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 150.63%. Given Grabagun Digital’s higher possible upside, analysts clearly believe Grabagun Digital is more favorable than Zumiez.
Risk & Volatility
Zumiez has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Grabagun Digital has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.
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% |
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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