Financial Review: Esprit (OTCMKTS:ESPGY) vs. Ermenegildo Zegna (NYSE:ZGN)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Ermenegildo Zegna and Esprit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	0	3	4	0	2.57
Esprit	0	0	0	0	0.00

Ermenegildo Zegna currently has a consensus price target of $11.20, suggesting a potential upside of 7.33%. Given Ermenegildo Zegna’s stronger consensus rating and higher probable upside, research analysts clearly believe Ermenegildo Zegna is more favorable than Esprit.

Institutional & Insider Ownership

12.9% of Ermenegildo Zegna shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Ermenegildo Zegna has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Esprit has a beta of -0.36, indicating that its stock price is 136% less volatile than the S&P 500.

Profitability

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

Earnings & Valuation

This table compares Ermenegildo Zegna and Esprit”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	2.02	$83.41 million	N/A	N/A
Esprit	$5.38 million	0.19	-$157.30 million	N/A	N/A

Ermenegildo Zegna has higher revenue and earnings than Esprit.

Summary

Ermenegildo Zegna beats Esprit on 9 of the 9 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 Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.