Zumiez (NASDAQ:ZUMZ) vs. High Tide (NASDAQ:HITI) Head-To-Head Contrast

Zumiez (NASDAQ:ZUMZ) and High Tide (NASDAQ:HITI) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares Zumiez and High Tide”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$929.06 million	0.22	$13.38 million	$0.72	18.49
High Tide	$425.10 million	0.59	-$36.23 million	($0.23)	-12.13

Zumiez has higher revenue and earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Zumiez, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zumiez and High Tide’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%
High Tide	-4.73%	5.13%	1.55%

Analyst Ratings

This is a summary of recent recommendations and price targets for Zumiez and High Tide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	3	0	0	2.00
High Tide	1	0	3	0	2.50

High Tide has a consensus target price of $5.62, suggesting a potential upside of 101.61%. Given High Tide’s stronger consensus rating and higher probable upside, analysts plainly believe High Tide is more favorable than Zumiez.

Risk and Volatility

Zumiez has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, High Tide has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

95.5% of Zumiez shares are held by institutional investors. Comparatively, 4.5% of High Tide shares are held by institutional investors. 24.3% of Zumiez shares are held by insiders. Comparatively, 12.4% of High Tide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Zumiez beats High Tide on 9 of the 14 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 High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.