Analyzing Zumiez (NASDAQ:ZUMZ) & Esprit (OTCMKTS:ESPGY)

Zumiez (NASDAQ:ZUMZ) and Esprit (OTCMKTS:ESPGY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Zumiez and Esprit”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$889.20 million	0.50	-$1.71 million	$0.48	54.25
Esprit	$5.38 million	0.32	-$157.30 million	N/A	N/A

Zumiez has higher revenue and earnings than Esprit.

Insider & Institutional Ownership

95.5% of Zumiez shares are held by institutional investors. 21.2% of Zumiez shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Zumiez and Esprit’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%
Esprit	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Zumiez and Esprit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	2	0	1	2.67
Esprit	0	0	0	0	0.00

Zumiez presently has a consensus target price of $18.00, indicating a potential downside of 30.88%. Given Zumiez’s stronger consensus rating and higher possible upside, analysts plainly believe Zumiez is more favorable than Esprit.

Summary

Zumiez beats Esprit on 11 of the 11 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 Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.