Head-To-Head Review: Ever-Glory International Group (NASDAQ:EVK) versus Ermenegildo Zegna (NYSE:ZGN)

Ever-Glory International Group (NASDAQ:EVKGet Rating) and Ermenegildo Zegna (NYSE:ZGNGet Rating) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

1.2% of Ever-Glory International Group shares are held by institutional investors. Comparatively, 24.8% of Ermenegildo Zegna shares are held by institutional investors. 38.0% of Ever-Glory International Group shares are held by insiders. Comparatively, 1.2% of Ermenegildo Zegna shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Ever-Glory International Group and Ermenegildo Zegna, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ever-Glory International Group 0 0 0 0 N/A
Ermenegildo Zegna 0 2 1 0 2.33

Ermenegildo Zegna has a consensus target price of $11.53, suggesting a potential upside of 14.76%. Given Ermenegildo Zegna’s higher possible upside, analysts plainly believe Ermenegildo Zegna is more favorable than Ever-Glory International Group.

Risk and Volatility

Ever-Glory International Group has a beta of -0.38, meaning that its stock price is 138% less volatile than the S&P 500. Comparatively, Ermenegildo Zegna has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ever-Glory International Group 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
Ever-Glory International Group $330.98 million 0.06 -$90,000.00 ($0.27) -5.00
Ermenegildo Zegna $1.53 billion 0.33 -$160.90 million N/A N/A

Ever-Glory International Group has higher earnings, but lower revenue than Ermenegildo Zegna.

Profitability

This table compares Ever-Glory International Group and Ermenegildo Zegna’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ever-Glory International Group -1.23% -2.97% -1.21%
Ermenegildo Zegna N/A -82.29% -14.51%

Summary

Ermenegildo Zegna beats Ever-Glory International Group on 7 of the 11 factors compared between the two stocks.

Ever-Glory International Group Company Profile (Get Rating)

Ever-Glory International Group, Inc., together with its subsidiaries, manufactures, supplies, and retails apparel in Mainland China, Hong Kong, Germany, the United Kingdom, Europe, Japan, and the United States. It operates through two segments, Wholesale and Retail. The company primarily offers casual wear, outerwear, and sportswear. Its products include coats, jackets, slacks, skirts, shirts, trousers, and jeans for women; vests, jackets, trousers, skiwear, shirts, coats, and jeans for men; and coats, vests, down jackets, trousers, knitwear, and jeans for children. The company offers its woman apparel under the La go go, Velwin, Sea To Sky, Jizhu, and idole brands. It also engages in the import and export of apparel, fabric, and accessories. The company provides its products directly to consumers through retail stores, as well as online stores at Tmall, Dangdang mall, JD.com, VIP.com, etc. As of December 31, 2021, it operated 880 stores, which included 166 flagship stores located in approximately 20 provinces in China. The company is based in Nanjing, the Peoples Republic of China.

Ermenegildo Zegna Company Profile (Get Rating)

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. is a subsidiary of Monterubello Societa' Semplice.

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