Contrasting Ermenegildo Zegna (NYSE:ZGN) and Jerash Holdings (US) (NASDAQ:JRSH)

Ermenegildo Zegna (NYSE:ZGNGet Rating) and Jerash Holdings (US) (NASDAQ:JRSHGet Rating) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Ermenegildo Zegna has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Jerash Holdings (US) has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Ermenegildo Zegna and Jerash Holdings (US)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ermenegildo Zegna N/A -82.29% -14.51%
Jerash Holdings (US) 6.41% 14.13% 11.48%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Ermenegildo Zegna and Jerash Holdings (US), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ermenegildo Zegna 0 2 1 0 2.33
Jerash Holdings (US) 0 0 3 0 3.00

Ermenegildo Zegna presently has a consensus price target of $11.87, indicating a potential upside of 12.80%. Jerash Holdings (US) has a consensus price target of $11.33, indicating a potential upside of 83.98%. Given Jerash Holdings (US)’s stronger consensus rating and higher possible upside, analysts clearly believe Jerash Holdings (US) is more favorable than Ermenegildo Zegna.

Earnings & Valuation

This table compares Ermenegildo Zegna and Jerash Holdings (US)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ermenegildo Zegna $1.53 billion 0.35 -$160.90 million N/A N/A
Jerash Holdings (US) $90.21 million 0.84 $4.15 million $0.75 8.21

Jerash Holdings (US) has lower revenue, but higher earnings than Ermenegildo Zegna.

Insider & Institutional Ownership

24.8% of Ermenegildo Zegna shares are owned by institutional investors. Comparatively, 20.4% of Jerash Holdings (US) shares are owned by institutional investors. 1.2% of Ermenegildo Zegna shares are owned by insiders. Comparatively, 44.2% of Jerash Holdings (US) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Jerash Holdings (US) beats Ermenegildo Zegna on 10 of the 12 factors compared between the two stocks.

About Ermenegildo Zegna (Get Rating)

Ermenegildo Zegna N.V., together with its subsidiaries, designs, manufactures, markets, and distributes luxury menswear, footwear, leather goods, and other accessories under the Zegna and the Thom Browne brands. It provides luxury leisurewear for men; formal suits, tuxedos, shirts, blazers, formal overcoats, and accessories; leather accessories comprising shoes, bags, belts, and small leather accessories; and fragrances. The company also offers luxury womenswear and childrenswear under the Thom Browne brand, as well as provides eyewear, cufflinks and jewelry, watches, underwear, and beachwear manufactured by third parties under licenses. It serves customers through its retail stores and online channels in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. The company was founded in 1910 and is based in Trivero, Italy. Ermenegildo Zegna N.V. is a subsidiary of Monterubello Societa' Semplice.

About Jerash Holdings (US) (Get Rating)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and readymade sport and outerwear. The company offers jackets, polo shirts, t-shirts, pants, and shorts made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Jordan, and internationally. The company was incorporated in 2016 and is based in Fairfield, New Jersey.

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