Head to Head Comparison: Ermenegildo Zegna (NYSE:ZGN) and Deckers Outdoor (NYSE:DECK)

Ermenegildo Zegna (NYSE:ZGN) and Deckers Outdoor (NYSE:DECK) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ermenegildo Zegna	N/A	N/A	N/A
Deckers Outdoor	19.46%	41.60%	27.35%

Valuation and Earnings

This table compares Ermenegildo Zegna and Deckers Outdoor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$2.17 billion	2.43	$111.54 million	N/A	N/A
Deckers Outdoor	$5.37 billion	2.66	$966.09 million	$7.08	14.23

Deckers Outdoor has higher revenue and earnings than Ermenegildo Zegna.

Risk and Volatility

Ermenegildo Zegna has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ermenegildo Zegna and Deckers Outdoor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	0	4	4	0	2.50
Deckers Outdoor	3	10	11	1	2.40

Ermenegildo Zegna currently has a consensus target price of $12.26, indicating a potential downside of 1.61%. Deckers Outdoor has a consensus target price of $126.35, indicating a potential upside of 25.37%. Given Deckers Outdoor’s higher possible upside, analysts plainly believe Deckers Outdoor is more favorable than Ermenegildo Zegna.

Institutional & Insider Ownership

12.9% of Ermenegildo Zegna shares are owned by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are owned by institutional investors. 1.2% of Ermenegildo Zegna shares are owned by insiders. Comparatively, 0.4% of Deckers Outdoor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Deckers Outdoor beats Ermenegildo Zegna on 11 of the 13 factors compared between the two stocks.

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.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.