Contrasting Ermenegildo Zegna (NYSE:ZGN) and Kering (OTCMKTS:PPRUY)

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

Institutional & Insider Ownership

12.9% of Ermenegildo Zegna shares are held by institutional investors. Comparatively, 1.0% of Kering 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, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Ermenegildo Zegna has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Kering has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Profitability

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

Analyst Recommendations

This is a breakdown of recent ratings for Ermenegildo Zegna and Kering, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	0	4	4	0	2.50
Kering	2	5	2	0	2.00

Ermenegildo Zegna presently has a consensus target price of $12.26, indicating a potential downside of 3.45%. Given Ermenegildo Zegna’s stronger consensus rating and higher possible upside, research analysts clearly believe Ermenegildo Zegna is more favorable than Kering.

Earnings & Valuation

This table compares Ermenegildo Zegna and Kering”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$2.17 billion	2.48	$111.54 million	N/A	N/A
Kering	$16.60 billion	2.11	$81.46 million	N/A	N/A

Ermenegildo Zegna has higher earnings, but lower revenue than Kering.

Summary

Ermenegildo Zegna beats Kering on 7 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 Kering

Kering SA manages the development of a series of renowned houses in fashion, leather goods and jewelry in France, the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company offers ready-to-wear products apparel and accessories for men and women. It also offers leather goods and shoes; watches and jewelry; eyewear products; and fragrances and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, Kering Beauté, and Kering Eyewear brands. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.