Comparing Kering (OTCMKTS:PPRUY) and Zumiez (NASDAQ:ZUMZ)

Zumiez (NASDAQ:ZUMZ) and Kering (OTCMKTS:PPRUY) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$929.06 million	0.32	$13.38 million	$0.83	21.29
Kering	$16.60 billion	2.08	$81.46 million	N/A	N/A

Kering has higher revenue and earnings than Zumiez.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Zumiez and Kering, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	1	2	0	0	1.67
Kering	1	6	2	0	2.11

Zumiez currently has a consensus target price of $18.00, indicating a potential upside of 1.87%. Given Zumiez’s higher probable upside, research analysts plainly believe Zumiez is more favorable than Kering.

Institutional and Insider Ownership

95.5% of Zumiez shares are owned by institutional investors. Comparatively, 1.0% of Kering shares are owned by institutional investors. 24.3% of Zumiez shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zumiez	1.54%	4.24%	2.05%
Kering	N/A	N/A	N/A

Risk & Volatility

Zumiez has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Kering has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

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 Kering

Kering SA manages the development of a series of renowned houses in fashion, leather goods and jewelry in France, the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company offers ready-to-wear products apparel and accessories for men and women. It also offers leather goods and shoes; watches and jewelry; eyewear products; and fragrances and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, Kering Beauté, and Kering Eyewear brands. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.