Comparing J-Long Group (NASDAQ:JL) and Zumiez (NASDAQ:ZUMZ)

Zumiez (NASDAQ:ZUMZ) and J-Long Group (NASDAQ:JL) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Institutional & Insider Ownership

95.4% of Zumiez shares are owned by institutional investors. 20.3% of Zumiez 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Zumiez and J-Long Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	2	0	0	2.00
J-Long Group	0	0	0	0	N/A

Zumiez presently has a consensus price target of $19.50, suggesting a potential downside of 18.51%. Given Zumiez’s higher possible upside, equities research analysts clearly believe Zumiez is more favorable than J-Long Group.

Valuation & Earnings

This table compares Zumiez and J-Long Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$869.99 million	0.56	-$62.61 million	($3.15)	-7.59
J-Long Group	$30.48 million	0.35	N/A	N/A	N/A

J-Long Group has lower revenue, but higher earnings than Zumiez.

Profitability

This table compares Zumiez and J-Long Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zumiez	-7.01%	-5.47%	-2.83%
J-Long Group	N/A	N/A	N/A

Summary

Zumiez beats J-Long Group on 5 of the 8 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 J-Long Group

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. It also sells through online. The company was founded in 1985 and is based in Tsuen Wan, Hong Kong.