Reviewing Zalando (OTCMKTS:ZLNDY) & Next (OTCMKTS:NXGPY)

Zalando (OTCMKTS:ZLNDY) and Next (OTCMKTS:NXGPY) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Zalando and Next”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zalando	$11.44 billion	0.67	$271.71 million	$0.57	25.65
Next	$7.82 billion	2.61	$938.45 million	N/A	N/A

Next has lower revenue, but higher earnings than Zalando.

Analyst Ratings

This is a breakdown of current ratings and target prices for Zalando and Next, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	1	1	2	1	2.60
Next	0	0	0	0	0.00

Profitability

This table compares Zalando and Next’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zalando	2.49%	10.19%	3.37%
Next	N/A	N/A	N/A

Volatility & Risk

Zalando has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Next has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Summary

Zalando beats Next on 8 of the 10 factors compared between the two stocks.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.

About Next

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women’s, men’s, children’s, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.