High Tide (NASDAQ:HITI – Get Free Report) and Zumiez (NASDAQ:ZUMZ – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Profitability
This table compares High Tide and Zumiez’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| High Tide | -4.73% | 5.13% | 1.55% |
| Zumiez | 1.36% | 3.71% | 1.78% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for High Tide and Zumiez, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| High Tide | 1 | 0 | 3 | 0 | 2.50 |
| Zumiez | 0 | 3 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
4.5% of High Tide shares are held by institutional investors. Comparatively, 95.4% of Zumiez shares are held by institutional investors. 12.4% of High Tide shares are held by insiders. Comparatively, 24.3% of Zumiez shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
High Tide has a beta of 0.56, indicating that its share price is 44% less 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.
Earnings & Valuation
This table compares High Tide and Zumiez”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| High Tide | $425.10 million | 0.55 | -$36.23 million | ($0.23) | -11.43 |
| Zumiez | $932.75 million | 0.22 | $13.38 million | $0.72 | 18.46 |
Zumiez has higher revenue and earnings than High Tide. High Tide 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 High Tide on 9 of the 14 factors compared between the two stocks.
About High Tide
High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.
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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