Critical Contrast: Bosideng International (OTCMKTS:BSDGY) vs. Ermenegildo Zegna (NYSE:ZGN)

Ermenegildo Zegna (NYSE:ZGN) and Bosideng International (OTCMKTS:BSDGY) are both consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Profitability

This table compares Ermenegildo Zegna and Bosideng International’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
Bosideng International	N/A	N/A	N/A

Insider and Institutional Ownership

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

Dividends

Ermenegildo Zegna pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. Bosideng International pays an annual dividend of $2.03 per share and has a dividend yield of 6.5%. Ermenegildo Zegna pays out 24.5% of its earnings in the form of a dividend. Bosideng International pays out 52.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ermenegildo Zegna and Bosideng International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	0	1	1	0	2.50
Bosideng International	0	0	0	0	N/A

Ermenegildo Zegna presently has a consensus target price of $14.25, suggesting a potential upside of 75.28%. Given Ermenegildo Zegna’s higher probable upside, equities analysts plainly believe Ermenegildo Zegna is more favorable than Bosideng International.

Valuation & Earnings

This table compares Ermenegildo Zegna and Bosideng International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$1.96 billion	1.68	$131.53 million	$0.49	16.59
Bosideng International	N/A	N/A	N/A	$3.90	8.00

Ermenegildo Zegna has higher revenue and earnings than Bosideng International. Bosideng International is trading at a lower price-to-earnings ratio than Ermenegildo Zegna, indicating that it is currently the more affordable of the two stocks.

Summary

Ermenegildo Zegna beats Bosideng International on 7 of the 9 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 Bosideng International

Bosideng International Holdings Limited engages in the research, design, development, manufacturing, marketing, and distribution of branded down apparel products, original equipment manufacturing (OEM) products, and non-down apparel products in the People's Republic of China. The company operates through four segments: Down Apparels, OEM Management, Ladieswear Apparels, and Diversified Apparels. It engages in the business of sourcing and distributing of branded down and brand authorization, OEM products, and ladieswear apparels; and non-seasonal apparels, including school uniform and children's wear. The company provides down apparel products under the Bosideng, Snow Flying, Bengen, etc. brands; ladies wear products under the JESSIE, BUOU BUOU, KOREANO, and KLOVA brands; and school uniforms under the Sameite brand. It also offers network consulting and e-business of down and non-down apparel; logistics and storage services; and brand design and development services, as well as operates as an advertisement agency. The company distributes its products through ladies retail, self-operated retail, and retail outlets operated by third party distributors. Bosideng International Holdings Limited was founded in 1976 and is headquartered in Central, Hong Kong.