Magic Empire Global Limited MEGL

Competitive advantage analysis · financial-services

Asset Management Specialized
Overall moat score
38/100
Developing

About Magic Empire Global Limited

Magic Empire Global Limited provides corporate finance advisory services in Hong Kong. The company provides initial public offering sponsorship, financial and independent financial advisory, and post-listing compliance advisory. It also offers corporate services, which include accounting and financial reporting advisory, company secretarial services, internal control enhancement, investor relations advisory, and other consulting services. The company was incorporated in 2016 and … Full MEGL analysis →

Competitive advantage assessment

Key strengths

  • Sticky AUM Base Revenue stickiness is high (stability score 0.69).
  • Conservative Leverage Leverage is conservative vs peers (score 0.84).

Key risks

  • Fee Margin Pressure Fee margin quality is below peers (score 0.20).
  • High Compensation Costs Compensation costs relative to peers are high (score 0.20).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Fee Revenue Quality

Developing
27

Where MEGL ranks in Capital Markets

Magic Empire Global Limited ranks #39 of 67 scored companies in Capital Markets by moat score — the top 58%. The widest moat in the group is Interactive Brokers Group, Inc. (IBKR) at 83/100.

Moat scores for companies ranked near MEGL in Capital Markets
# Company Moat score Rating
35 Scully Royalty Ltd. SRL 48/100 Developing
36 BitFuFu Inc. FUFU 48/100 Developing
37 Coincheck Group N.V. Warrants CNCKW 47/100 Developing
38 Bitcoin Depot Inc. BTM 47/100 Developing
39 Magic Empire Global Limited MEGL 38/100 Developing
40 Mawson Infrastructure Group Inc MIGI 37/100 Developing
41 Metalpha Technology Holding Lim MATH 36/100 Developing
42 Garden Stage Limited GSIW 35/100 Developing
43 Greenidge Generation Holdings I GREE 34/100 Developing

See every Asset Management & Capital Markets company ranked by moat score →

How MEGL scores on the Asset Management Specialized defenses

Fee Revenue Quality

Score 27 · 20% of the moat score

Fee revenue quality is the ability to charge above the industry's falling average and keep charging it.

Client Retention & Revenue Stickiness

Score 50 · 18% of the moat score

Assets under management leave far more easily than they arrive, and the fee leaves with them.

Compensation Discipline

Score 20 · 18% of the moat score

Compensation is the largest expense in asset management and the one that decides whether a good year ever reaches shareholders.

Capital Efficiency

Score 38 · 20% of the moat score

Asset managers are asset-light: with little capital employed, a healthy business should earn a very high return on equity, and a merely average one is a real warning.

Earnings Quality & Cash Conversion

Score 38 · 14% of the moat score

Reported profits here can be flattered by performance fees, seed-capital gains and consolidated fund accounting, none of which recur reliably.

Balance Sheet Strength

Score 76 · 10% of the moat score

Because the business needs so little capital, an asset manager carrying meaningful debt has usually borrowed to buy another manager or to fund distributions.

How each Asset Management Specialized defense is measured, in full →

Understanding MEGL's moat

What is Magic Empire Global Limited's moat score?

Magic Empire Global Limited (MEGL) scores 38 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #39 of 67 scored companies in Capital Markets, the top 58%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 74 companies in Capital Markets. Its strongest defense is Balance Sheet Strength (76/100) and its weakest is Compensation Discipline (20/100).

How does Magic Empire Global Limited compare with other Capital Markets companies?

Magic Empire Global Limited ranks #39 of 67 scored companies in Capital Markets by moat score. The widest moat in Capital Markets is Interactive Brokers Group, Inc. (IBKR) at 83/100. The companies ranked closest are Bitcoin Depot Inc. (BTM) at 46 just above it and Mawson Infrastructure Group Inc (MIGI) at 37 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Asset Management Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 74 companies in Capital Markets. The defenses are then weighted to produce the overall score out of 100.

Why is Magic Empire Global Limited scored with the Asset Management Specialized template?

An asset manager owns almost nothing. It charges a fee on someone else's money, pays much of that fee out in compensation, and keeps the remainder — so its economics turn on the fee rate it can defend, whether client money stays, and how much revenue survives the bonus pool. The Asset Management template scores those questions rather than the balance sheet, which in this industry is largely beside the point.

Which competitive defenses are measured for Magic Empire Global Limited?

The Asset Management Specialized template measures 6 defenses, and MEGL scores: Fee Revenue Quality (27), Client Retention & Revenue Stickiness (50), Compensation Discipline (20), Capital Efficiency (38), Earnings Quality & Cash Conversion (38), Balance Sheet Strength (76). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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