Party City Holdco (NYSE: PRTY) and ZAGG (NASDAQ:ZAGG) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Valuation and Earnings
This table compares Party City Holdco and ZAGG’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Party City Holdco||$2.37 billion||0.60||$215.34 million||$1.20||12.25|
|ZAGG||$519.49 million||0.85||$15.10 million||$0.97||16.08|
Party City Holdco has higher revenue and earnings than ZAGG. Party City Holdco is trading at a lower price-to-earnings ratio than ZAGG, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Party City Holdco has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500. Comparatively, ZAGG has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Party City Holdco and ZAGG, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Party City Holdco||0||2||4||0||2.67|
Party City Holdco presently has a consensus price target of $18.83, indicating a potential upside of 28.12%. ZAGG has a consensus price target of $18.43, indicating a potential upside of 18.13%. Given Party City Holdco’s higher probable upside, equities analysts plainly believe Party City Holdco is more favorable than ZAGG.
Insider and Institutional Ownership
84.3% of ZAGG shares are owned by institutional investors. 6.5% of Party City Holdco shares are owned by company insiders. Comparatively, 5.8% of ZAGG shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Party City Holdco and ZAGG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Party City Holdco||9.11%||14.56%||4.24%|
Party City Holdco Company Profile
Party City Holdco Inc., through its subsidiaries, designs, manufactures, sources, and distributes party supplies in the United States and internationally. The company operates in two segments, Retail and Wholesale. It offers paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories and novelties, stationery, and decorations. As of March 9, 2018, the company offered its products through its 900 specialty retail party supply stores, including approximately 150 franchise stores in North America under the Party City and Halloween City names; and e-commerce Websites, principally through the domain name PartyCity.com. In addition, it franchises individual stores and franchise areas throughout the United States, Mexico, and Puerto Rico principally under the Party City name. The company offers its products through company-owned stores, independent party supply stores, mass merchants, grocery retailers, and dollar stores, as well as through other retailers and distributors. Party City Holdco Inc. was founded in 1947 and is based in Elmsford, New York.
ZAGG Company Profile
ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes mobile tech accessories for smartphones and tablets in the United States, Europe, and internationally. It operates in ZAGG and mophie segments. The company offers screen protection products; battery cases and power management products for tablets, smartphones, MP3 players, cameras, and other electronic mobile devices; device specific keyboards and device agnostic keyboards; and earbuds, headphones, wireless charging products, Bluetooth speakers, and cables under the ZAGG, InvisibleShield, IFROGZ, and mophie brands. It sells its products through indirect channels, including big box retailers, wireless retailers, domestic and international distributors, independent Apple retailers, university bookstores, and small independently owned consumer electronics stores, as well as directly to retailers or through distributors; and directly to consumers on its Websites at ZAGG.com and mophie.com. The company also sells its products to franchisees that operate kiosks and ZAGG branded stores in shopping malls and retail centers. ZAGG Inc is headquartered in Midvale, Utah.
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