Zumiez (NASDAQ:ZUMZ – Get Free Report) and ARKO (NASDAQ:ARKO – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
Insider & Institutional Ownership
95.4% of Zumiez shares are owned by institutional investors. Comparatively, 78.3% of ARKO shares are owned by institutional investors. 24.3% of Zumiez shares are owned by company insiders. Comparatively, 21.9% of ARKO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Zumiez and ARKO”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zumiez | $932.75 million | 0.22 | $13.38 million | $0.72 | 18.33 |
| ARKO | $7.93 billion | 0.06 | $22.74 million | $0.07 | 60.44 |
ARKO has higher revenue and earnings than Zumiez. Zumiez is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Zumiez and ARKO, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
| ARKO | 1 | 1 | 1 | 0 | 2.00 |
ARKO has a consensus target price of $14.50, suggesting a potential upside of 242.71%. Given ARKO’s higher probable upside, analysts plainly believe ARKO is more favorable than Zumiez.
Profitability
This table compares Zumiez and ARKO’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% |
| ARKO | 0.19% | 4.02% | 0.41% |
Volatility & Risk
Zumiez has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, ARKO has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.
Summary
Zumiez beats ARKO on 7 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 ARKO
Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.
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