WallStSmart

Gildan Activewear Inc. (GIL)vsErmenegildo Zegna NV (ZGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gildan Activewear Inc. generates 147% more annual revenue ($4.74B vs $1.92B). ZGN leads profitability with a 5.1% profit margin vs 1.3%. ZGN trades at a lower P/E of 33.4x. GIL earns a higher WallStSmart Score of 62/100 (C+).

GIL

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 5.5Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.29

ZGN

Hold

36

out of 100

Grade: F

Growth: 4.7Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GILSignificantly Overvalued (-25.8%)

Margin of Safety

-25.8%

Fair Value

$57.58

Current Price

$57.50

$0.08 premium

UndervaluedFair: $57.58Overvalued

Intrinsic value data unavailable for ZGN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GIL4 strengths · Avg: 9.0/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Revenue GrowthGrowth
72.3%10/10

Revenue surging 72.3% year-over-year

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

ZGN0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

GIL4 concerns · Avg: 3.0/10
Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

Debt/EquityHealth
1.473/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

ZGN4 concerns · Avg: 4.0/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Altman Z-ScoreHealth
1.764/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : GIL

The strongest argument for GIL centers on PEG Ratio, Revenue Growth, Price/Book. Revenue growth of 72.3% demonstrates continued momentum. PEG of 0.50 suggests the stock is reasonably priced for its growth.

Bull Case : ZGN

ZGN has a balanced fundamental profile.

Bear Case : GIL

The primary concerns for GIL are Return on Equity, Profit Margin, Debt/Equity. A P/E of 42.9x leaves little room for execution misses. Thin 1.3% margins leave little buffer for downturns.

Bear Case : ZGN

The primary concerns for ZGN are P/E Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

GIL profiles as a hypergrowth stock while ZGN is a value play — different risk/reward profiles.

GIL carries more volatility with a beta of 1.12 — expect wider price swings.

GIL is growing revenue faster at 72.3% — sustainability is the question.

ZGN generates stronger free cash flow (191M), providing more financial flexibility.

Bottom Line

GIL scores higher overall (62/100 vs 36/100) and 72.3% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Gildan Activewear Inc.

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, Canada, and internationally. The company is headquartered in Montreal, Canada.

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Ermenegildo Zegna NV

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Ermenegildo Zegna NV designs, manufactures, exports and sells men's clothing.

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