WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gildan Activewear Inc. generates 140% more annual revenue ($4.74B vs $1.98B). ZGN leads profitability with a 4.0% profit margin vs 1.3%. GIL trades at a lower P/E of 35.8x. GIL earns a higher WallStSmart Score of 63/100 (C+).

GIL

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.29

ZGN

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 6.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 1.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GILSignificantly Overvalued (-26.5%)

Margin of Safety

-26.5%

Fair Value

$57.25

Current Price

$47.01

$10.24 premium

UndervaluedFair: $57.25Overvalued

Intrinsic value data unavailable for ZGN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GIL4 strengths · Avg: 9.0/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Revenue GrowthGrowth
72.3%10/10

Revenue surging 72.3% year-over-year

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

ZGN1 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

GIL4 concerns · Avg: 3.3/10
P/E RatioValuation
35.8x4/10

Premium valuation, high expectations priced in

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
1.453/10

Elevated debt levels

ZGN4 concerns · Avg: 3.5/10
P/E RatioValuation
36.5x4/10

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

Debt/EquityHealth
1.113/10

Elevated debt levels

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 0.39 suggests the stock is reasonably priced for its growth.

Bull Case : ZGN

The strongest argument for ZGN centers on Price/Book.

Bear Case : GIL

The primary concerns for GIL are P/E Ratio, Return on Equity, Profit Margin. Thin 1.3% margins leave little buffer for downturns.

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

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

GIL carries more volatility with a beta of 1.08 — expect wider price swings.

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

GIL generates stronger free cash flow (317M), providing more financial flexibility.

Bottom Line

GIL scores higher overall (63/100 vs 37/100) 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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