Head-To-Head Comparison: Zumiez (NASDAQ:ZUMZ) vs. AutoZone (NYSE:AZO)

AutoZone (NYSE:AZO) and Zumiez (NASDAQ:ZUMZ) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AutoZone and Zumiez, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoZone	0	7	18	2	2.81
Zumiez	0	3	0	0	2.00

AutoZone presently has a consensus price target of $3,669.12, suggesting a potential upside of 18.36%. Given AutoZone’s stronger consensus rating and higher possible upside, equities analysts clearly believe AutoZone is more favorable than Zumiez.

Earnings & Valuation

This table compares AutoZone and Zumiez”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoZone	$20.34 billion	2.49	$2.57 billion	$152.79	20.29
Zumiez	$929.06 million	0.23	$13.38 million	$0.72	19.78

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

Volatility and Risk

AutoZone has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Zumiez has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AutoZone	12.65%	-90.08%	12.45%
Zumiez	1.36%	3.71%	1.78%

Insider and Institutional Ownership

92.7% of AutoZone shares are owned by institutional investors. Comparatively, 95.5% of Zumiez shares are owned by institutional investors. 2.6% of AutoZone shares are owned by insiders. Comparatively, 24.3% of Zumiez shares are owned 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.

Summary

AutoZone beats Zumiez on 11 of the 15 factors compared between the two stocks.

About AutoZone

AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also offers A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.

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.