America’s Car-Mart (NASDAQ:CRMT – Get Free Report) and Zumiez (NASDAQ:ZUMZ – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Profitability
This table compares America’s Car-Mart and Zumiez’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| America’s Car-Mart | -18.21% | -15.19% | -4.73% |
| Zumiez | 1.36% | 3.71% | 1.78% |
Analyst Recommendations
This is a summary of current ratings for America’s Car-Mart and Zumiez, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| America’s Car-Mart | 1 | 2 | 0 | 0 | 1.67 |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
89.1% of America’s Car-Mart shares are owned by institutional investors. Comparatively, 95.5% of Zumiez shares are owned by institutional investors. 18.4% of America’s Car-Mart shares are owned by insiders. Comparatively, 24.3% of Zumiez shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
America’s Car-Mart has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Zumiez has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
Earnings and Valuation
This table compares America’s Car-Mart and Zumiez”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| America’s Car-Mart | $1.28 billion | 0.01 | -$139.11 million | ($23.80) | -0.05 |
| Zumiez | $929.06 million | 0.23 | $13.38 million | $0.72 | 19.74 |
Zumiez has lower revenue, but higher earnings than America’s Car-Mart. America’s Car-Mart is trading at a lower price-to-earnings ratio than Zumiez, indicating that it is currently the more affordable of the two stocks.
Summary
Zumiez beats America’s Car-Mart on 10 of the 13 factors compared between the two stocks.
About America’s Car-Mart
America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.
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.
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