Direct comparison between Li Ning (OTCMKTS:LNNGY) and Ermenegildo Zegna (NYSE:ZGN)


Ermenegildo Zegna (NYSE:ZGN – Get Rating) and Li Ning (OTCMKTS:LNNGY – Get Rating) are both retail/wholesale companies, but which is the better stock? We’ll compare the two companies based on their dividend strength, profitability, risk, analyst recommendations, valuation, earnings, and institutional ownership.

Analyst Notes

This is a breakdown of Ermenegildo Zegna and Li Ning’s current ratings, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Ermenegildo Zegna 0 2 1 0 2.33
Lining 1 0 0 0 1.00

Ermenegildo Zegna currently has a consensus price target of $11.87, suggesting a potential upside of 23.35%. Given Ermenegildo Zegna’s stronger consensus rating and higher likely upside, analysts clearly believe that Ermenegildo Zegna is more favorable than Li Ning.

Profitability

This table compares the net margins, return on equity and return on assets of Ermenegildo Zegna and Li Ning.

Net margins Return on equity return on assets
Ermenegildo Zegna N / A -82.29% -14.51%
Lining N / A N / A N / A

Institutional and Insider Ownership

24.8% of Ermenegildo Zegna shares are held by institutional investors. Comparatively, 0.0% of Li Ning shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held by insiders of the company. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Volatility and risk

Ermenegildo Zegna has a beta of 0.47, which means its stock price is 53% less volatile than the S&P 500. Comparatively, Li Ning has a beta of 0.94, which means its stock price is 6% less volatile than the S&P 500.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Ermenegildo Zegna and Li Ning.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Ermenegildo Zegna $1.53 billion 0.32 -$160.90 million N / A N / A
Lining $3.50 billion 6:30 p.m. $621.69 million N / A N / A

Li Ning has higher income and profit than Ermenegildo Zegna.

Summary

Li Ning beats Ermenegildo Zegna on 6 of the 11 factors compared between the two stocks.

About Ermenegildo Zegna (Get an evaluation)

Ermenegildo Zegna NV, together with its subsidiaries, designs, manufactures, markets and distributes luxury men’s clothing, footwear, leather goods and other accessories under the Zegna and Thom Browne brands. It offers luxury leisure wear for men; ceremonial suits, tuxedos, shirts, blazers, ceremonial overcoats and accessories; leather accessories including shoes, bags, belts and small leather accessories; and perfumes. The company also offers luxury women’s and children’s apparel under the Thom Browne brand, as well as eyewear, cufflinks and jewelry, watches, underwear and beachwear manufactured by third parties under license. It serves its customers through its retail stores and online channels in Europe, the Middle East, Africa, North America, Latin America, Asia-Pacific and internationally. The company was founded in 1910 and is based in Trivero, Italy. Ermenegildo Zegna NV is a subsidiary of Monterubello Societa’ Semplice.

About Li Ning (Get an evaluation)

Li Ning Company Limited is engaged in the research and development, design, manufacture, marketing, distribution and retail of sporting goods in the People’s Republic of China. The Company offers sporting goods, including footwear, apparel, equipment and accessories for work and leisure purposes, primarily under the LI-NING brand. It also develops, manufactures, markets, distributes and/or markets outdoor sports products under the AIGLE brand; table tennis under the Double Bonheur brand; fashionable dance and yoga fitness products under the Danskin brand; and badminton under the Kason brand. As of December 31, 2021, the company operated 7,137 conventional stores, flagship stores, LI-NING stores in China, outlet stores and multi-brand stores under the LI-NING brand. Li Ning Company Limited was founded in 1990 and is headquartered in Beijing, People’s Republic of China.



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