Financial Review: Zumiez (NASDAQ:ZUMZ) and OneWater Marine (NASDAQ:ONEW)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Zumiez and OneWater Marine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	3	0	0	2.00
OneWater Marine	1	2	2	0	2.20

OneWater Marine has a consensus price target of $13.00, indicating a potential upside of 34.85%. Given OneWater Marine’s stronger consensus rating and higher possible upside, analysts clearly believe OneWater Marine is more favorable than Zumiez.

Profitability

This table compares Zumiez and OneWater Marine’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%
OneWater Marine	-6.72%	2.20%	0.44%

Risk and Volatility

Zumiez has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Institutional and Insider Ownership

95.4% of Zumiez shares are held by institutional investors. Comparatively, 94.3% of OneWater Marine shares are held by institutional investors. 24.3% of Zumiez shares are held by company insiders. Comparatively, 19.5% of OneWater Marine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$932.75 million	0.25	$13.38 million	$0.72	21.07
OneWater Marine	$1.87 billion	0.09	-$114.58 million	($7.46)	-1.29

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

Summary

Zumiez beats OneWater Marine on 8 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 OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.