Ermenegildo Zegna (NYSE:ZGN) & Sportsman’s Warehouse (NASDAQ:SPWH) Head-To-Head Comparison

Ermenegildo Zegna (NYSE:ZGN) and Sportsman’s Warehouse (NASDAQ:SPWH) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Risk and Volatility

Ermenegildo Zegna has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ermenegildo Zegna and Sportsman’s Warehouse”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$2.17 billion	2.44	$111.54 million	N/A	N/A
Sportsman’s Warehouse	$1.21 billion	0.05	-$50.06 million	($1.30)	-1.08

Ermenegildo Zegna has higher revenue and earnings than Sportsman’s Warehouse.

Profitability

This table compares Ermenegildo Zegna and Sportsman’s Warehouse’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
Sportsman’s Warehouse	-4.14%	-10.30%	-2.38%

Institutional and Insider Ownership

12.9% of Ermenegildo Zegna shares are held by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Ermenegildo Zegna and Sportsman’s Warehouse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	0	4	4	0	2.50
Sportsman’s Warehouse	1	1	3	0	2.40

Ermenegildo Zegna currently has a consensus target price of $12.26, suggesting a potential downside of 2.02%. Sportsman’s Warehouse has a consensus target price of $2.94, suggesting a potential upside of 109.07%. Given Sportsman’s Warehouse’s higher probable upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Ermenegildo Zegna.

Summary

Ermenegildo Zegna beats Sportsman’s Warehouse on 9 of the 12 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 Sportsman’s Warehouse

Sportsman’s Warehouse Holdings, Inc. engages in the retail of sporting and athletic goods. Its products include hunting and shooting, archery, fishing, camping, boating accessories, optics and electronics, knives and tools, and footwear. The company was founded in 1986 and is headquartered in West Jordan, UT.