Head-To-Head Survey: Shoe Carnival (NASDAQ:SCVL) & Ermenegildo Zegna (NYSE:ZGN)

Shoe Carnival (NASDAQ:SCVL) and Ermenegildo Zegna (NYSE:ZGN) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Shoe Carnival and Ermenegildo Zegna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	3.31%	7.24%	4.19%
Ermenegildo Zegna	N/A	N/A	N/A

Institutional & Insider Ownership

66.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 12.9% of Ermenegildo Zegna shares are held by institutional investors. 33.6% of Shoe Carnival shares are held by company insiders. Comparatively, 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 company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoe Carnival	$1.13 billion	0.42	$52.27 million	$1.35	12.91
Ermenegildo Zegna	$2.17 billion	2.54	$111.54 million	N/A	N/A

Ermenegildo Zegna has higher revenue and earnings than Shoe Carnival.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	0	1	0	2	3.33
Ermenegildo Zegna	0	4	5	0	2.56

Shoe Carnival presently has a consensus price target of $22.00, indicating a potential upside of 26.26%. Ermenegildo Zegna has a consensus price target of $13.01, indicating a potential upside of 0.12%. Given Shoe Carnival’s stronger consensus rating and higher possible upside, analysts clearly believe Shoe Carnival is more favorable than Ermenegildo Zegna.

Risk & Volatility

Shoe Carnival has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Ermenegildo Zegna has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Shoe Carnival beats Ermenegildo Zegna on 9 of the 13 factors compared between the two stocks.

About Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.

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.