WallStSmart

Ferrari NV (RACE)vsErmenegildo Zegna NV (ZGN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Ferrari NV generates 272% more annual revenue ($7.35B vs $1.98B). RACE leads profitability with a 22.3% profit margin vs 4.0%. RACE trades at a lower P/E of 36.9x. RACE earns a higher WallStSmart Score of 58/100 (C).

RACE

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.0Value: 2.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.44

ZGN

Avoid

34

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

RACESignificantly Overvalued (-56.2%)

Margin of Safety

-56.2%

Fair Value

$251.71

Current Price

$395.99

$144.28 premium

UndervaluedFair: $251.71Overvalued

Intrinsic value data unavailable for ZGN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RACE4 strengths · Avg: 9.5/10
Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

Market CapQuality
$69.73B9/10

Large-cap with strong market position

Profit MarginProfitability
22.3%9/10

Keeps 22 of every $100 in revenue as profit

ZGN0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

RACE4 concerns · Avg: 3.0/10
P/E RatioValuation
36.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.0x4/10

Trading at 17.0x book value

PEG RatioValuation
3.532/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.442/10

Distress zone — elevated risk

ZGN4 concerns · Avg: 3.5/10
P/E RatioValuation
38.3x4/10

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 : RACE

The strongest argument for RACE centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 22.3% and operating margin at 31.1%.

Bull Case : ZGN

ZGN has a balanced fundamental profile.

Bear Case : RACE

The primary concerns for RACE are P/E Ratio, Price/Book, PEG Ratio.

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

RACE profiles as a mature stock while ZGN is a value play — different risk/reward profiles.

ZGN carries more volatility with a beta of 0.91 — expect wider price swings.

RACE is growing revenue faster at 8.4% — sustainability is the question.

RACE generates stronger free cash flow (330M), providing more financial flexibility.

Bottom Line

RACE scores higher overall (58/100 vs 34/100), backed by strong 22.3% margins. Both earn "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.

Ferrari NV

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.

Ermenegildo Zegna NV

CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA

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

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