Ermenegildo Zegna (NYSE:ZGN) vs. Torrid (NYSE:CURV) Financial Survey

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

Profitability

This table compares Ermenegildo Zegna and Torrid’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
Torrid	0.30%	-1.69%	0.70%

Analyst Ratings

This is a summary of current recommendations and price targets for Ermenegildo Zegna and Torrid, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	1	3	2	0	2.17
Torrid	2	2	1	0	1.80

Ermenegildo Zegna currently has a consensus target price of $9.94, suggesting a potential upside of 8.69%. Torrid has a consensus target price of $3.09, suggesting a potential upside of 77.95%. Given Torrid’s higher possible upside, analysts clearly believe Torrid is more favorable than Ermenegildo Zegna.

Insider and Institutional Ownership

12.9% of Ermenegildo Zegna shares are owned by institutional investors. Comparatively, 81.8% of Torrid shares are owned by institutional investors. 1.2% of Ermenegildo Zegna shares are owned by company insiders. Comparatively, 5.9% of Torrid shares are owned 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.

Volatility and Risk

Ermenegildo Zegna has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Torrid has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ermenegildo Zegna and Torrid”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$2.11 billion	1.77	$83.41 million	$0.53	17.25
Torrid	$1.10 billion	0.16	$16.32 million	$0.04	43.38

Ermenegildo Zegna has higher revenue and earnings than Torrid. Ermenegildo Zegna is trading at a lower price-to-earnings ratio than Torrid, indicating that it is currently the more affordable of 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. operates as a subsidiary of Monterubello Societa’ Semplice.

About Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.