Crocs (NASDAQ:CROX – Get Free Report) and Ermenegildo Zegna (NYSE:ZGN – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Insider & Institutional Ownership
93.4% of Crocs shares are owned by institutional investors. Comparatively, 12.9% of Ermenegildo Zegna shares are owned by institutional investors. 3.1% of Crocs shares are owned by insiders. Comparatively, 1.2% of Ermenegildo Zegna shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Crocs and Ermenegildo Zegna’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crocs | 14.64% | 47.75% | 15.20% |
| Ermenegildo Zegna | N/A | N/A | N/A |
Volatility and Risk
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Crocs and Ermenegildo Zegna, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crocs | 2 | 7 | 10 | 1 | 2.50 |
| Ermenegildo Zegna | 1 | 4 | 5 | 0 | 2.40 |
Crocs presently has a consensus target price of $139.10, suggesting a potential upside of 12.64%. Ermenegildo Zegna has a consensus target price of $13.13, suggesting a potential downside of 4.81%. Given Crocs’ stronger consensus rating and higher possible upside, research analysts clearly believe Crocs is more favorable than Ermenegildo Zegna.
Earnings & Valuation
This table compares Crocs and Ermenegildo Zegna”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crocs | $4.05 billion | 1.46 | -$81.20 million | $11.57 | 10.67 |
| Ermenegildo Zegna | $2.17 billion | 2.69 | $111.54 million | N/A | N/A |
Ermenegildo Zegna has lower revenue, but higher earnings than Crocs.
Summary
Crocs beats Ermenegildo Zegna on 11 of the 13 factors compared between the two stocks.
About Crocs
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.
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.
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