Head-To-Head Survey: MINISO Group (NYSE:MNSO) & Zalando (OTCMKTS:ZLNDY)

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

Risk and Volatility

MINISO Group has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Zalando has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. 73.5% of MINISO Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for MINISO Group and Zalando, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	0	2	4	1	2.86
Zalando	1	1	2	1	2.60

MINISO Group currently has a consensus target price of $24.86, suggesting a potential upside of 1.62%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts clearly believe MINISO Group is more favorable than Zalando.

Valuation and Earnings

This table compares MINISO Group and Zalando”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	$2.33 billion	3.26	$364.10 million	$1.07	22.86
Zalando	$11.44 billion	0.72	$271.71 million	$0.57	27.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	12.63%	22.60%	10.79%
Zalando	2.49%	10.19%	3.37%

Summary

MINISO Group beats Zalando on 11 of the 14 factors compared between the two stocks.

About MINISO Group

MINISO Group Holding Limited, an investment holding company, engages in the retail and wholesale of lifestyle products and pop toy products in China, Asia, the United States, 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; and blind boxes, toy bricks, model figures, model kits, collectible dolls, Ichiban Kuji, sculptures, and other popular toys under the TOP TOY brand. The company was founded in 2013 and is based in Guangzhou, China.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.