V.F. Corporation (VFC) vs Ermenegildo Zegna N.V. (ZGN)

V.F. Corporation and Ermenegildo Zegna N.V. are both Apparel Manufacturing companies. V.F. Corporation and Ermenegildo Zegna N.V. are of similar size ($5.7B and $5.3B). Ermenegildo Zegna N.V. has negative trailing earnings, so its P/E is not meaningful; V.F. Corporation trades at 21.2×. V.F. Corporation has the higher net margin (2.88% vs −1.64%) and the higher return on invested capital (7.87% vs 0.00%). Both pay a dividend; V.F. Corporation yields more (2.39% vs 0.94%). Across the 20 metrics below, V.F. Corporation leads on 11 and Ermenegildo Zegna N.V. on 9.

Valuation

Metric VFC ZGN Apparel Manufacturing median
P/E 21.23 n/m 17.44
P/S 0.62 0.77 0.45
P/B 3.35 2.00 1.45
Price to free cash flow 9.79 4.88 7.97
EV/EBITDA 7.01 n/m 8.45
EV/Sales 0.92 0.77 0.57
Earnings yield 4.71% (1.16%) 0.00%
Free cash flow yield 10.21% 20.49% 10.15%

Profitability

Metric VFC ZGN Apparel Manufacturing median
Gross margin 54.97% 0.00% 48.31%
Operating margin 6.10% 0.00% 2.46%
Net margin 2.88% (1.64%) (0.46%)
Free cash flow margin 6.34% 0.00% 5.26%
Return on equity 17.94% 0.00% 4.29%
Return on assets 2.80% 0.00% 0.00%
Return on invested capital 7.87% 0.00% 0.00%

Growth

Metric VFC ZGN Apparel Manufacturing median
Revenue growth (TTM) 0.19% — 0.02%
EPS growth (last fiscal year) 233.33% 34.37% (7.11%)
Revenue growth, 5-year CAGR 0.78% 7.10% 6.36%
Net income growth, 5-year CAGR (8.97%) 0.00% 0.00%

Health

Metric VFC ZGN Apparel Manufacturing median
Debt to equity 1.99 0.20 0.23
Current ratio 1.43 1.47 1.81
Net debt to EBITDA 2.18 0.07 (0.43)

Dividend

Metric VFC ZGN Apparel Manufacturing median
Dividend yield 2.39% 0.94% 2.11%
Payout ratio 0.52 — 0.41

Size

Metric VFC ZGN Apparel Manufacturing median
Market cap 5.71b 5.31b 381.64m

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