Critical Analysis: MGO Global (NASDAQ:MGOL) and Ermenegildo Zegna (NYSE:ZGN)

Ermenegildo Zegna (NYSE:ZGN) and MGO Global (NASDAQ:MGOL) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Ermenegildo Zegna has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, MGO Global has a beta of 5.5, indicating that its stock price is 450% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Ermenegildo Zegna and MGO Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ermenegildo Zegna	1	0	2	0	2.33
MGO Global	0	0	0	0	N/A

Ermenegildo Zegna currently has a consensus price target of $15.60, suggesting a potential upside of 23.42%. Given Ermenegildo Zegna’s higher probable upside, analysts plainly believe Ermenegildo Zegna is more favorable than MGO Global.

Earnings and Valuation

This table compares Ermenegildo Zegna and MGO Global’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ermenegildo Zegna	$2.06 billion	2.49	$131.53 million	N/A	N/A
MGO Global	$5.36 million	3.55	-$7.14 million	($0.50)	-2.32

Ermenegildo Zegna has higher revenue and earnings than MGO Global.

Institutional and Insider Ownership

12.9% of Ermenegildo Zegna shares are held by institutional investors. Comparatively, 1.0% of MGO Global shares are held by institutional investors. 1.2% of Ermenegildo Zegna shares are held by company insiders. Comparatively, 58.9% of MGO Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ermenegildo Zegna and MGO Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ermenegildo Zegna	N/A	N/A	N/A
MGO Global	-133.23%	-226.43%	-170.71%

Summary

Ermenegildo Zegna beats MGO Global on 8 of the 11 factors compared between the two stocks.

About Ermenegildo Zegna

Ermenegildo Zegna N.V., together with its subsidiaries, designs, manufactures, markets, and distributes luxury menswear, footwear, leather goods, and other accessories under the Zegna and the Thom Browne brands. It provides luxury leisurewear for men; formal suits, tuxedos, shirts, blazers, formal overcoats, and accessories; leather accessories comprising shoes, bags, belts, and small leather accessories; and fragrances. The company also offers luxury womenswear and childrenswear under the Thom Browne brand, as well as provides eyewear, cufflinks and jewelry, watches, underwear, and beachwear manufactured by third parties under licenses. It serves customers through its retail stores and online channels in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. The company was founded in 1910 and is based in Trivero, Italy. Ermenegildo Zegna N.V. operates as a subsidiary of Monterubello Societa' Semplice.

About MGO Global

MGO Global, Inc. operates as a lifestyle brand portfolio company. The company is involved in the fashion design, brand development and management, sourcing and manufacturing, licensing, IP protection, corporate finance, consumer engagement and experience, ecommerce, and retail sales and marketing activities related to the Messi brand. MGO Global, Inc. was founded in 2018 and is headquartered in Fort Lauderdale, Florida.