Canada Goose (NYSE: GOOS – Get a rating) and Ermenegildo Zegna (NYSE: ZGN – Get a rating) are both retail/wholesale businesses, but what is the best investment? We’ll compare the two companies based on earnings strength, profitability, dividends, analyst recommendations, valuation, risk, and institutional ownership.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of Canada Goose and Ermenegildo Zegna.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Canada Goose||$713.64 million||3.26||$53.21 million||$0.78||27.91|
|Ermenegildo Zegna||$1.53 billion||0.32||-$160.90 million||N / A||N / A|
Canada Goose has higher earnings, but lower earnings than Ermenegildo Zegna.
Risk and Volatility
Canada Goose has a beta of 1.59, suggesting its stock price is 59% more volatile than the S&P 500. In comparison, Ermenegildo Zegna has a beta of 0.37, suggesting its stock price is 63% less volatile than the S&P 500.
This is a breakdown of the current recommendations and price targets for Canada Goose and Ermenegildo Zegna, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Canada Goose currently has a consensus target price of $44.78, indicating a potential upside of 105.69%. Ermenegildo Zegna has a consensus target price of $11.87, indicating an upside potential of 20.72%. Given Canada Goose’s stronger consensus rating and higher upside potential, analysts clearly believe Canada Goose is more favorable than Ermenegildo Zegna.
Institutional and insider ownership
43.2% of Canada Goose shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.
This table compares the net margins, return on equity and return on assets of Canada Goose and Ermenegildo Zegna.
|Net margins||Return on equity||return on assets|
|Ermenegildo Zegna||N / A||-82.29%||-14.51%|
Canada Goose beats Ermenegildo Zegna on 10 out of 12 factors compared between the two stocks.
About the Canada Goose (Get a rating)
Canada Goose Holdings Inc. designs, manufactures and sells luxury performance apparel for men, women, youth, children and babies in Canada, the United States, Asia, Europe and internationally. It operates through three segments: Direct-to-Consumer, Wholesale and Other. The company offers parkas, lightweight down jackets, rainwear, windproof clothing, knitwear, footwear and accessories for the fall, winter and spring seasons. As of March 28, 2021, it operated in its 51 domestic e-commerce markets and 28 directly operated retail stores in North America, Europe and Asia. The Company also sells its products through wholesale partners and distributors. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.
About Ermenegildo Zegna (Get a rating)
Ermenegildo Zegna NV, together with its subsidiaries, designs, manufactures, markets and distributes luxury men’s clothing, footwear, leather goods and other accessories under the Zegna and Thom Browne brands. It offers luxury leisure wear for men; ceremonial suits, tuxedos, shirts, blazers, ceremonial overcoats and accessories; leather accessories including shoes, bags, belts and small leather accessories; and perfumes. The company also offers luxury women’s and children’s apparel under the Thom Browne brand, as well as eyewear, cufflinks and jewelry, watches, underwear and beachwear manufactured by third parties under license. It serves its customers through its retail stores and online channels in Europe, the Middle East, Africa, North America, Latin America, Asia-Pacific and internationally. The company was founded in 1910 and is based in Trivero, Italy. Ermenegildo Zegna NV is a subsidiary of Monterubello Societa’ Semplice.
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