Reviewing Zumiez (NASDAQ:ZUMZ) & OneWater Marine (NASDAQ:ONEW)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneWater Marine	$1.81 billion	0.09	-$114.58 million	($7.46)	-1.26
Zumiez	$929.06 million	0.23	$13.38 million	$0.72	19.60

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

Volatility and Risk

OneWater Marine has a beta of 1.6, indicating that its share price is 60% more 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.

Insider and Institutional Ownership

94.3% of OneWater Marine shares are owned by institutional investors. Comparatively, 95.5% of Zumiez shares are owned by institutional investors. 19.5% of OneWater Marine 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, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneWater Marine	-6.72%	2.20%	0.44%
Zumiez	1.36%	3.71%	1.78%

Analyst Recommendations

This is a summary of recent recommendations for OneWater Marine and Zumiez, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneWater Marine	1	2	2	0	2.20
Zumiez	0	3	0	0	2.00

OneWater Marine currently has a consensus price target of $13.00, indicating a potential upside of 38.74%. Given OneWater Marine’s stronger consensus rating and higher possible upside, research analysts plainly believe OneWater Marine is more favorable than Zumiez.

Summary

Zumiez beats OneWater Marine on 9 of the 14 factors compared between the two stocks.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.

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.