MINISO Group (NYSE:MNSO) versus Tesco (OTCMKTS:TSCDY) Critical Contrast

MINISO Group (NYSE:MNSO) and Tesco (OTCMKTS:TSCDY) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

14.2% of MINISO Group shares are held by institutional investors. Comparatively, 0.1% of Tesco shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MINISO Group and Tesco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MINISO Group 0 0 2 0 3.00
Tesco 0 0 7 0 3.00

MINISO Group currently has a consensus target price of $25.20, indicating a potential upside of 92.22%. Given MINISO Group’s higher probable upside, analysts clearly believe MINISO Group is more favorable than Tesco.

Profitability

This table compares MINISO Group and Tesco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MINISO Group -14.98% 7.77% 3.72%
Tesco N/A N/A N/A

Dividends

MINISO Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Tesco pays an annual dividend of $0.49 per share and has a dividend yield of 4.6%. MINISO Group pays out 53.8% of its earnings in the form of a dividend. Tesco pays out 188.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares MINISO Group and Tesco’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MINISO Group $1.41 billion 2.84 -$219.16 million $0.26 50.42
Tesco $67.16 billion 0.41 $7.96 billion $0.26 40.96

Tesco has higher revenue and earnings than MINISO Group. Tesco is trading at a lower price-to-earnings ratio than MINISO Group, indicating that it is currently the more affordable of the two stocks.

MINISO Group Company Profile

MINISO Group Holding Limited, an investment holding company, engages in the retail and wholesale of lifestyle products in China, Asia, the Americas, and Europe. The company offers products in various categories, including home decor products, small electronics, textiles, accessories, beauty tools, toys, cosmetics, personal care products, snacks, fragrances and perfumes, and stationeries and gifts under the MINISO and WonderLife brand names. As of June 30, 2020, it operated a network of approximately 4,200 MINISO stores, as well as online sales channels. The company was founded in 2013 and is based in Guangzhou, China.

Tesco Company Profile

Tesco Plc engages in the retailing and retail banking. It operates through the following segments: UK and ROI, Central Europe, Asia, and Tesco Bank. The UK and ROI segment caters to the United Kingdom and Republic of Ireland. The Central Europe segment covers the Czech Republic, Hungary, Poland, and Slovakia. The Asia segment includes Malaysia and Thailand. The Tesco Bank segment involves in retail banking and insurance services. The company was founded by John Edward Cohen in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.

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