Wacoal (OTCMKTS:WACLY – Get Free Report) and Ermenegildo Zegna (NYSE:ZGN – Get Free Report) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
This table compares Wacoal and Ermenegildo Zegna’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Wacoal pays an annual dividend of $2.38 per share and has a dividend yield of 2.2%. Ermenegildo Zegna pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. Wacoal pays out -383.9% of its earnings in the form of a dividend.
Volatility and Risk
Earnings and Valuation
This table compares Wacoal and Ermenegildo Zegna’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wacoal||$1.40 billion||0.93||-$13.14 million||($0.62)||-172.56|
|Ermenegildo Zegna||$1.49 billion||2.43||$54.24 million||N/A||N/A|
Ermenegildo Zegna has higher revenue and earnings than Wacoal.
Insider & Institutional Ownership
12.9% of Ermenegildo Zegna shares are held by institutional investors. 0.8% of Wacoal shares are held by company insiders. Comparatively, 1.2% of Ermenegildo Zegna shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Wacoal and Ermenegildo Zegna, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ermenegildo Zegna has a consensus price target of $13.40, suggesting a potential downside of 10.49%. Given Ermenegildo Zegna’s higher probable upside, analysts clearly believe Ermenegildo Zegna is more favorable than Wacoal.
Ermenegildo Zegna beats Wacoal on 11 of the 13 factors compared between the two stocks.
Wacoal Holdings Corp. engages in the manufacturing, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the United States, and Europe. The company operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. It offers intimate apparel mainly women's foundation wear, lingerie, nightwear and children's underwear; and outerwear, sportswear, and other textile products and accessories. The company also engages in the restaurant, cultural and service-related businesses; and manufacture and sale of mannequins and fixtures, interior design work, and other textile-related businesses. It offers products through department stores, general merchandisers, and other general retailers in Japan, as well as directly managed retail stores, E-commerce websites, and distributors in Japan and internationally. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.
About Ermenegildo Zegna
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.
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