Financial Survey: Ermenegildo Zegna (NYSE:ZGN) & Rent the Runway (NASDAQ:RENT)

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

Valuation & Earnings

This table compares Rent the Runway and Ermenegildo Zegna”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$306.20 million	0.49	-$69.90 million	($2.92)	-1.54
Ermenegildo Zegna	$2.11 billion	1.87	$83.41 million	N/A	N/A

Ermenegildo Zegna has higher revenue and earnings than Rent the Runway.

Insider & Institutional Ownership

73.1% of Rent the Runway shares are owned by institutional investors. Comparatively, 12.9% of Ermenegildo Zegna shares are owned by institutional investors. 8.2% of Rent the Runway shares are owned by insiders. Comparatively, 1.2% of Ermenegildo Zegna shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Rent the Runway has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Ermenegildo Zegna has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Rent the Runway and Ermenegildo Zegna, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	2	0	0	1.67
Ermenegildo Zegna	0	3	4	0	2.57

Ermenegildo Zegna has a consensus target price of $11.73, indicating a potential upside of 21.10%. Given Ermenegildo Zegna’s stronger consensus rating and higher possible upside, analysts plainly believe Ermenegildo Zegna is more favorable than Rent the Runway.

Profitability

This table compares Rent the Runway and Ermenegildo Zegna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	3.37%	N/A	-36.65%
Ermenegildo Zegna	N/A	N/A	N/A

Summary

Ermenegildo Zegna beats Rent the Runway on 7 of the 11 factors compared between the two stocks.

About Rent the Runway

Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.

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.