Contrasting Ermenegildo Zegna (NYSE:ZGN) and SuperGroup (OTCMKTS:SEPGY)

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

Profitability

This table compares Ermenegildo Zegna and SuperGroup’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
SuperGroup	N/A	N/A	N/A

Institutional & Insider Ownership

12.9% of Ermenegildo Zegna shares are owned by institutional investors. 1.2% of Ermenegildo Zegna shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$1.91 billion	2.23	$83.41 million	$0.53	19.74
SuperGroup	$655.98 million	0.01	-$177.94 million	N/A	N/A

Ermenegildo Zegna has higher revenue and earnings than SuperGroup.

Analyst Ratings

This is a summary of current recommendations for Ermenegildo Zegna and SuperGroup, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	1	4	3	0	2.25
SuperGroup	0	0	0	0	0.00

Ermenegildo Zegna currently has a consensus target price of $10.43, suggesting a potential downside of 0.25%. Given Ermenegildo Zegna’s stronger consensus rating and higher possible upside, research analysts clearly believe Ermenegildo Zegna is more favorable than SuperGroup.

Summary

Ermenegildo Zegna beats SuperGroup on 8 of the 8 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. operates as a subsidiary of Monterubello Societa’ Semplice.

About SuperGroup

Superdry plc designs, produces, markets, and sells clothing, footwear, and accessories primarily under the Superdry brand for men and women in the United Kingdom and internationally. It operates through Retail and Wholesale segments. The Company operates through stores, concessions, various Internet sites, multi-brand independents and distributors, franchise, and license stores. It operates 213 owned, and 410 franchised and licensed stores; and 18 international websites. The company was formerly known as SuperGroup Plc and changed its name to Superdry plc in January 2018. Superdry plc was founded in 1985 and is headquartered in Cheltenham, the United Kingdom.