Reviewing Ermenegildo Zegna (NYSE:ZGN) & Perfect Moment (NASDAQ:PMNT)

Perfect Moment (NASDAQ:PMNT) and Ermenegildo Zegna (NYSE:ZGN) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

23.0% of Perfect Moment shares are owned by institutional investors. Comparatively, 12.9% of Ermenegildo Zegna shares are owned by institutional investors. 1.2% of Ermenegildo Zegna shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Perfect Moment and Ermenegildo Zegna, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect Moment	0	0	1	0	3.00
Ermenegildo Zegna	1	2	1	0	2.00

Perfect Moment currently has a consensus price target of $6.00, suggesting a potential upside of 421.74%. Ermenegildo Zegna has a consensus price target of $8.70, suggesting a potential upside of 12.77%. Given Perfect Moment’s stronger consensus rating and higher possible upside, equities analysts clearly believe Perfect Moment is more favorable than Ermenegildo Zegna.

Earnings and Valuation

This table compares Perfect Moment and Ermenegildo Zegna”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect Moment	$21.31 million	0.89	-$8.72 million	($1.30)	-0.88
Ermenegildo Zegna	$1.96 billion	1.59	$131.53 million	$0.53	14.56

Ermenegildo Zegna has higher revenue and earnings than Perfect Moment. Perfect Moment is trading at a lower price-to-earnings ratio than Ermenegildo Zegna, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perfect Moment	-67.38%	-513.83%	-119.38%
Ermenegildo Zegna	N/A	N/A	N/A

Summary

Ermenegildo Zegna beats Perfect Moment on 9 of the 12 factors compared between the two stocks.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.

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.