Head-To-Head Comparison: Sportsman’s Warehouse (NASDAQ:SPWH) & Ermenegildo Zegna (NYSE:ZGN)

Sportsman’s Warehouse (NASDAQ:SPWH) and Ermenegildo Zegna (NYSE:ZGN) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. Comparatively, 12.9% of Ermenegildo Zegna shares are owned by institutional investors. 3.8% of Sportsman’s Warehouse shares are owned by insiders. Comparatively, 1.2% of Ermenegildo Zegna shares are owned by 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.

Valuation and Earnings

This table compares Sportsman’s Warehouse and Ermenegildo Zegna”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-1.02
Ermenegildo Zegna	$1.92 billion	2.78	$111.54 million	N/A	N/A

Ermenegildo Zegna has higher revenue and earnings than Sportsman’s Warehouse.

Volatility & Risk

Sportsman’s Warehouse has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Ermenegildo Zegna has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-4.14%	-10.30%	-2.38%
Ermenegildo Zegna	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sportsman’s Warehouse and Ermenegildo Zegna, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	1	3	0	2.40
Ermenegildo Zegna	0	4	4	0	2.50

Sportsman’s Warehouse presently has a consensus target price of $2.94, indicating a potential upside of 122.54%. Ermenegildo Zegna has a consensus target price of $12.26, indicating a potential downside of 2.49%. Given Sportsman’s Warehouse’s higher probable upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Ermenegildo Zegna.

Summary

Ermenegildo Zegna beats Sportsman’s Warehouse on 9 of the 12 factors compared between the two stocks.

About Sportsman’s Warehouse

Sportsman’s Warehouse Holdings, Inc. engages in the retail of sporting and athletic goods. Its products include hunting and shooting, archery, fishing, camping, boating accessories, optics and electronics, knives and tools, and footwear. The company was founded in 1986 and is headquartered in West Jordan, UT.

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.