Comparing AutoZone (NYSE:AZO) & Zumiez (NASDAQ:ZUMZ)

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

Earnings & Valuation

This table compares Zumiez and AutoZone”s gross revenue, earnings per share (EPS) 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	19.61
AutoZone	$20.34 billion	2.34	$2.57 billion	$152.79	19.06

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

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Zumiez and AutoZone, as provided by MarketBeat.com.

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

AutoZone has a consensus target price of $3,669.12, suggesting a potential upside of 25.98%. Given AutoZone’s stronger consensus rating and higher possible upside, analysts clearly believe AutoZone is more favorable than Zumiez.

Profitability

This table compares Zumiez and AutoZone’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%
AutoZone	12.65%	-90.08%	12.45%

Insider & Institutional Ownership

95.5% of Zumiez shares are owned by institutional investors. Comparatively, 92.7% of AutoZone shares are owned by institutional investors. 24.3% of Zumiez shares are owned by insiders. Comparatively, 2.6% of AutoZone shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

AutoZone beats Zumiez on 10 of the 15 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 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.