Ralph Lauren Corporation (RL) vs Ermenegildo Zegna N.V. (ZGN)

Ralph Lauren Corporation and Ermenegildo Zegna N.V. are both Apparel Manufacturing companies. Ralph Lauren Corporation is the larger, with a market value of $21.9B against $5.3B — 4.1× the size. Ermenegildo Zegna N.V. has negative trailing earnings, so its P/E is not meaningful; Ralph Lauren Corporation trades at 23.0×. Ralph Lauren Corporation has the higher net margin (11.8% vs −1.64%) and the higher return on invested capital (35.0% vs 0.00%). Both pay a dividend; Ralph Lauren Corporation yields more (1.03% vs 0.94%). Across the 19 metrics below, Ralph Lauren Corporation leads on 12 and Ermenegildo Zegna N.V. on 7.

Valuation

Metric RL ZGN Apparel Manufacturing median
P/E 22.99 n/m 17.44
P/S 2.67 0.77 0.45
P/B 8.20 2.00 1.45
Price to free cash flow 21.39 4.88 7.97
EV/EBITDA 14.97 n/m 8.45
EV/Sales 2.66 0.77 0.57
Earnings yield 4.35% (1.16%) 0.00%
Free cash flow yield 4.68% 20.49% 10.15%

Profitability

Metric RL ZGN Apparel Manufacturing median
Gross margin 70.27% 0.00% 48.31%
Operating margin 14.94% 0.00% 2.46%
Net margin 11.76% (1.64%) (0.46%)
Free cash flow margin 12.49% 0.00% 5.26%
Return on equity 37.54% 0.00% 4.29%
Return on assets 12.76% 0.00% 0.00%
Return on invested capital 35.03% 0.00% 0.00%

Growth

Metric RL ZGN Apparel Manufacturing median
Revenue growth (TTM) 14.68% — 0.02%
EPS growth (last fiscal year) 30.15% 34.37% (7.11%)
Revenue growth, 5-year CAGR 13.02% 7.10% 6.36%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RL ZGN Apparel Manufacturing median
Debt to equity 0.53 0.20 0.23
Current ratio 2.04 1.47 1.81
Net debt to EBITDA (0.43) 0.07 (0.43)

Dividend

Metric RL ZGN Apparel Manufacturing median
Dividend yield 1.03% 0.94% 2.11%
Payout ratio 0.24 — 0.41

Size

Metric RL ZGN Apparel Manufacturing median
Market cap 21.87b 5.31b 381.64m

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