Kontoor Brands, Inc. (KTB) vs Ermenegildo Zegna N.V. (ZGN)

Kontoor Brands, Inc. and Ermenegildo Zegna N.V. are both Apparel Manufacturing companies. Ermenegildo Zegna N.V. is the larger, with a market value of $5.9B against $4.3B — 1.4× the size. Ermenegildo Zegna N.V. has negative trailing earnings, so its P/E is not meaningful; Kontoor Brands, Inc. trades at 21.7×. Kontoor Brands, Inc. has the higher net margin (6.94% vs −1.64%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Kontoor Brands, Inc. yields more (2.68% vs 0.87%). Across the 17 metrics below, Kontoor Brands, Inc. leads on 9 and Ermenegildo Zegna N.V. on 8.

Valuation

Metric KTB ZGN Apparel Manufacturing median
P/E 21.70 n/m 21.59
P/S 1.49 0.04 0.48
P/B 7.69 0.11 1.61
Price to free cash flow 10.63 0.26 8.73
EV/EBITDA 11.51 n/m 10.35
EV/Sales 1.86 0.04 0.62
Earnings yield 4.61% (1.06%) 1.56%
Free cash flow yield 9.40% 379.64% 8.16%

Profitability

Metric KTB ZGN Apparel Manufacturing median
Gross margin 0.00% 0.00% 52.07%
Operating margin 0.00% 0.00% 2.46%
Net margin 6.94% (1.64%) 1.32%
Free cash flow margin 14.97% 0.00% 3.76%
Return on equity 36.94% 0.00% 0.00%
Return on assets 7.12% 0.00% 0.00%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric KTB ZGN Apparel Manufacturing median
Revenue growth (TTM) 2.38% — 0.86%
EPS growth (last fiscal year) (7.11%) 34.37% (6.25%)
Revenue growth, 5-year CAGR 8.49% 7.10% 6.36%
Net income growth, 5-year CAGR 27.34% 0.00% 0.00%

Health

Metric KTB ZGN Apparel Manufacturing median
Debt to equity 2.03 0.20 0.20
Current ratio 1.69 1.47 1.81
Net debt to EBITDA 2.69 0.07 (0.43)

Dividend

Metric KTB ZGN Apparel Manufacturing median
Dividend yield 2.68% 0.87% 1.74%
Payout ratio 0.59 — 0.40

Size

Metric KTB ZGN Apparel Manufacturing median
Market cap 4.33b 5.92b 456.54m

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