WallStSmart

Ralph Lauren Corp Class A (RL)vsErmenegildo Zegna NV (ZGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ralph Lauren Corp Class A generates 323% more annual revenue ($8.36B vs $1.98B). RL leads profitability with a 11.8% profit margin vs 4.0%. RL trades at a lower P/E of 21.9x. RL earns a higher WallStSmart Score of 66/100 (B-).

RL

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 4.0Quality: 7.5
Piotroski: 6/9Altman Z: 4.52

ZGN

Avoid

32

out of 100

Grade: F

Growth: 4.7Profit: 6.0Value: 4.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RLSignificantly Overvalued (-77.5%)

Margin of Safety

-77.5%

Fair Value

$202.56

Current Price

$339.09

$136.53 premium

UndervaluedFair: $202.56Overvalued

Intrinsic value data unavailable for ZGN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RL3 strengths · Avg: 9.3/10
Return on EquityProfitability
36.1%10/10

Every $100 of equity generates 36 in profit

Altman Z-ScoreHealth
4.5210/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
21.6%8/10

Earnings expanding 21.6% YoY

ZGN1 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

RL2 concerns · Avg: 3.5/10
PEG RatioValuation
1.894/10

Expensive relative to growth rate

Debt/EquityHealth
1.103/10

Elevated debt levels

ZGN4 concerns · Avg: 3.3/10
P/E RatioValuation
34.4x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.764/10

Distress zone — elevated risk

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

EPS GrowthGrowth
-49.2%2/10

Earnings declined 49.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : RL

The strongest argument for RL centers on Return on Equity, Altman Z-Score, EPS Growth. Revenue growth of 14.0% demonstrates continued momentum.

Bull Case : ZGN

The strongest argument for ZGN centers on Price/Book.

Bear Case : RL

The primary concerns for RL are PEG Ratio, Debt/Equity.

Bear Case : ZGN

The primary concerns for ZGN are P/E Ratio, Altman Z-Score, Profit Margin. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

RL carries more volatility with a beta of 1.35 — expect wider price swings.

RL is growing revenue faster at 14.0% — sustainability is the question.

RL generates stronger free cash flow (286M), providing more financial flexibility.

Monitor APPAREL MANUFACTURING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RL scores higher overall (66/100 vs 32/100) and 14.0% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Ralph Lauren Corp Class A

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

Ralph Lauren Corporation is an American fashion company producing products ranging from the mid-range to the luxury segments. They are known for the clothing, marketing and distribution of products in four categories: apparel, home, accessories, and fragrances.

Ermenegildo Zegna NV

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

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

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