Critical Survey: Columbia Sportswear (NASDAQ:COLM) & Ermenegildo Zegna (NYSE:ZGN)

Columbia Sportswear (NASDAQ:COLMGet Rating) and Ermenegildo Zegna (NYSE:ZGNGet Rating) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Risk and Volatility

Columbia Sportswear has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Ermenegildo Zegna has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Institutional & Insider Ownership

54.0% of Columbia Sportswear shares are owned by institutional investors. 40.3% of Columbia Sportswear shares are owned by company insiders. Comparatively, 1.2% of Ermenegildo Zegna shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Columbia Sportswear and Ermenegildo Zegna, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Sportswear 0 5 3 0 2.38
Ermenegildo Zegna 0 1 1 0 2.50

Columbia Sportswear currently has a consensus target price of $112.50, suggesting a potential upside of 30.43%. Ermenegildo Zegna has a consensus target price of $12.30, suggesting a potential upside of 19.65%. Given Columbia Sportswear’s higher probable upside, equities research analysts plainly believe Columbia Sportswear is more favorable than Ermenegildo Zegna.

Valuation & Earnings

This table compares Columbia Sportswear and Ermenegildo Zegna’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbia Sportswear $3.13 billion 1.78 $354.11 million $5.36 16.09
Ermenegildo Zegna $1.53 billion 0.34 -$160.90 million N/A N/A

Columbia Sportswear has higher revenue and earnings than Ermenegildo Zegna.

Profitability

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

Net Margins Return on Equity Return on Assets
Columbia Sportswear 11.33% 18.64% 12.20%
Ermenegildo Zegna N/A -82.29% -14.51%

Summary

Columbia Sportswear beats Ermenegildo Zegna on 11 of the 12 factors compared between the two stocks.

Columbia Sportswear Company Profile (Get Rating)

Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment that are used in various activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel. It also offers footwear products that include lightweight hiking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities, and function-first fashion footwear and casual shoes for everyday use. The company sells its products under the Columbia, Mountain Hardwear, SOREL, and prAna brand names through the company owned network of branded and outlet retail stores, brand-specific e-commerce sites, and concession-based arrangements with third-parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, Internet retailers, and international distributors. As of December 31, 2021, it operated approximately 455 retail stores. The company was founded in 1938 and is headquartered in Portland, Oregon.

Ermenegildo Zegna Company Profile (Get Rating)

Ermenegildo Zegna N.V. 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 own and other retail stores, as well as online 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 s.s.

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