Zumiez (NASDAQ:ZUMZ) versus Rent the Runway (NASDAQ:RENT) Financial Contrast

Zumiez (NASDAQ:ZUMZ) and Rent the Runway (NASDAQ:RENT) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Zumiez and Rent the Runway”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$916.91 million	0.46	-$1.71 million	$0.48	51.77
Rent the Runway	$306.20 million	0.65	-$69.90 million	($2.92)	-2.04

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Zumiez and Rent the Runway, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	2	0	1	2.67
Rent the Runway	1	2	0	0	1.67

Zumiez presently has a consensus target price of $18.00, indicating a potential downside of 27.57%. Given Zumiez’s stronger consensus rating and higher possible upside, research analysts plainly believe Zumiez is more favorable than Rent the Runway.

Volatility and Risk

Zumiez has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Zumiez and Rent the Runway’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%
Rent the Runway	3.37%	N/A	-36.65%

Insider & Institutional Ownership

95.4% of Zumiez shares are held by institutional investors. Comparatively, 73.1% of Rent the Runway shares are held by institutional investors. 21.2% of Zumiez shares are held by insiders. Comparatively, 8.2% of Rent the Runway shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Zumiez beats Rent the Runway on 11 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 Rent the Runway

Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.