Contrasting Canada Goose (NYSE:GOOS) and Zumiez (NASDAQ:ZUMZ)

Zumiez (NASDAQ:ZUMZ) and Canada Goose (NYSE:GOOS) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

95.5% of Zumiez shares are owned by institutional investors. Comparatively, 83.6% of Canada Goose shares are owned by institutional investors. 20.3% of Zumiez shares are owned by company insiders. Comparatively, 0.5% of Canada Goose shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Zumiez and Canada Goose’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zumiez	0.94%	2.33%	1.14%
Canada Goose	1.96%	15.35%	4.62%

Earnings and Valuation

This table compares Zumiez and Canada Goose”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$889.20 million	0.52	-$1.71 million	$0.48	56.71
Canada Goose	$969.08 million	1.30	$68.13 million	$0.18	72.36

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

Volatility and Risk

Zumiez has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Canada Goose has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Zumiez and Canada Goose, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	2	0	1	2.67
Canada Goose	2	3	4	1	2.40

Zumiez currently has a consensus target price of $18.00, suggesting a potential downside of 33.87%. Canada Goose has a consensus target price of $15.00, suggesting a potential upside of 15.16%. Given Canada Goose’s higher probable upside, analysts clearly believe Canada Goose is more favorable than Zumiez.

Summary

Canada Goose beats Zumiez on 10 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 Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.