Zumiez (NASDAQ:ZUMZ – Get Free Report) and Penske Automotive Group (NYSE:PAG – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Volatility & Risk
Zumiez has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Penske Automotive Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Zumiez and Penske Automotive Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
| Penske Automotive Group | 0 | 5 | 5 | 0 | 2.50 |
Valuation and Earnings
This table compares Zumiez and Penske Automotive Group”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 | 0.23 | $13.38 million | $0.72 | 19.64 |
| Penske Automotive Group | $31.81 billion | 0.43 | $935.40 million | $13.58 | 15.28 |
Penske Automotive Group has higher revenue and earnings than Zumiez. Penske Automotive Group is trading at a lower price-to-earnings ratio than Zumiez, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zumiez and Penske Automotive Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zumiez | 1.36% | 3.71% | 1.78% |
| Penske Automotive Group | 2.81% | 14.78% | 4.72% |
Institutional & Insider Ownership
95.5% of Zumiez shares are held by institutional investors. Comparatively, 77.1% of Penske Automotive Group shares are held by institutional investors. 24.3% of Zumiez shares are held by insiders. Comparatively, 52.9% of Penske Automotive Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Penske Automotive Group beats Zumiez 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 Penske Automotive Group
Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company is also involved in the sale of new and used motor vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts. In addition, it operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts. Additionally, the company distributes diesel and gas engines, and power systems. Penske Automotive Group, Inc. was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan.
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