Kering (OTCMKTS:PPRUY – Get Free Report) and Ermenegildo Zegna (NYSE:ZGN – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
1.0% of Kering shares are held by institutional investors. Comparatively, 12.9% of Ermenegildo Zegna shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held 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 Kering and Ermenegildo Zegna’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kering | N/A | N/A | N/A |
| Ermenegildo Zegna | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kering | 2 | 5 | 2 | 0 | 2.00 |
| Ermenegildo Zegna | 0 | 4 | 4 | 0 | 2.50 |
Ermenegildo Zegna has a consensus price target of $12.26, suggesting a potential downside of 2.49%. Given Ermenegildo Zegna’s stronger consensus rating and higher probable upside, analysts plainly believe Ermenegildo Zegna is more favorable than Kering.
Earnings & Valuation
This table compares Kering and Ermenegildo Zegna”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kering | $16.60 billion | 2.04 | $81.46 million | N/A | N/A |
| Ermenegildo Zegna | $2.17 billion | 2.45 | $111.54 million | N/A | N/A |
Ermenegildo Zegna has lower revenue, but higher earnings than Kering.
Volatility and Risk
Kering has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Ermenegildo Zegna has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Summary
Ermenegildo Zegna beats Kering on 7 of the 9 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Kering Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kering and related companies with MarketBeat.com's FREE daily email newsletter.
