Digital Brands Group (NASDAQ:DBGI) and Zumiez (NASDAQ:ZUMZ) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations for Digital Brands Group and Zumiez, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Brands Group | 0 | 0 | 0 | 0 | N/A |
| Zumiez | 0 | 2 | 1 | 0 | 2.33 |
Zumiez has a consensus price target of $49.67, suggesting a potential upside of 8.06%. Given Zumiez’s higher possible upside, analysts clearly believe Zumiez is more favorable than Digital Brands Group.
Earnings & Valuation
This table compares Digital Brands Group and Zumiez’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Brands Group | N/A | N/A | N/A | N/A | N/A |
| Zumiez | $990.65 million | 1.20 | $76.23 million | $3.05 | 15.07 |
Zumiez has higher revenue and earnings than Digital Brands Group.
Insider & Institutional Ownership
77.8% of Zumiez shares are owned by institutional investors. 23.1% of Zumiez shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Digital Brands Group and Zumiez’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Brands Group | N/A | N/A | N/A |
| Zumiez | 10.93% | 23.52% | 12.60% |
Summary
Zumiez beats Digital Brands Group on 8 of the 8 factors compared between the two stocks.
About Digital Brands Group
Digital Brands Group, Inc. provides apparel under various brands on direct-to-consumer and wholesale basis. It operates as a digitally native vertical brand that sources products from third-party manufacturers and sells directly to the end consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. The company offers denims under the DSTLD brand; and luxury men's suiting under the ACE Studios brand. It also designs, manufactures, and sells women's apparel, including dresses, tops, jumpsuits, bottoms, sets, jackets, and rompers under the Bailey brand. The company was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was founded in 2012 and is headquartered in Austin, Texas.
About Zumiez
Zumiez Inc., together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of March 6, 2021, the company operated 722 stores, including 602 stores in the United States, 52 stores in Canada, 54 stores in Europe, and 14 stores in Australia under the names of Zumiez, Blue Tomato, and Fast Times. It also 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.