Analyzing Ermenegildo Zegna (NYSE:ZGN) & Lanvin Group (NYSE:LANV)

Ermenegildo Zegna (NYSE:ZGN) and Lanvin Group (NYSE:LANV) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ermenegildo Zegna and Lanvin Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	0	0	1	0	3.00
Lanvin Group	0	1	0	0	2.00

Ermenegildo Zegna currently has a consensus target price of $13.40, indicating a potential downside of 4.56%. Lanvin Group has a consensus target price of $5.00, indicating a potential upside of 13.12%. Given Lanvin Group’s higher possible upside, analysts clearly believe Lanvin Group is more favorable than Ermenegildo Zegna.

Insider and Institutional Ownership

12.9% of Ermenegildo Zegna shares are held by institutional investors. Comparatively, 75.1% of Lanvin Group shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held by company insiders. Comparatively, 2.7% of Lanvin Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ermenegildo Zegna and Lanvin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ermenegildo Zegna	N/A	N/A	N/A
Lanvin Group	N/A	-443.09%	-50.06%

Volatility and Risk

Ermenegildo Zegna has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Lanvin Group has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ermenegildo Zegna and Lanvin Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$1.49 billion	2.28	$54.24 million	N/A	N/A
Lanvin Group	$435.15 million	1.33	-$229.99 million	$0.33	13.39

Ermenegildo Zegna has higher revenue and earnings than Lanvin Group.

Summary

Ermenegildo Zegna beats Lanvin Group on 8 of the 11 factors compared between the two stocks.

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.

About Lanvin Group

Lanvin Group Holdings Limited operates as a couture house worldwide. The company offers ready-to-wear, made to measure, footwear, leather goods, costume jewelry, accessories, eyewear, and childrenswear under the Lanvin brand name; ready-to-wear, legwear, lingerie and beachwear, and accessories under the Wolford brand; footwear under the Sergio Rossi brand name; luxury womenswear, footwear, handbags, jewelry, and leather goods under the St. John brand; and leisurewear and formalwear under the Caruso brand name. The company was founded in 1889 and is headquartered in Shanghai, China. Lanvin Group Holdings Limited is a subsidiary of Fosun International Limited.