Shoe Carnival (NASDAQ:SCVL) and MINISO Group (NYSE:MNSO) Financial Comparison

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

Dividends

MINISO Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Shoe Carnival pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. MINISO Group pays out 57.7% of its earnings in the form of a dividend. Shoe Carnival pays out 28.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Shoe Carnival has increased its dividend for 14 consecutive years. Shoe Carnival is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	10.78%	20.02%	8.59%
Shoe Carnival	5.06%	8.75%	5.05%

Insider & Institutional Ownership

17.2% of MINISO Group shares are owned by institutional investors. Comparatively, 66.1% of Shoe Carnival shares are owned by institutional investors. 73.5% of MINISO Group shares are owned by insiders. Comparatively, 35.5% of Shoe Carnival shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares MINISO Group and Shoe Carnival”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$2.33 billion	2.51	$364.10 million	$0.97	19.47
Shoe Carnival	$1.20 billion	0.39	$73.77 million	$2.10	8.20

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

Risk and Volatility

MINISO Group has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Shoe Carnival has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MINISO Group and Shoe Carnival, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	0	2	4	1	2.86
Shoe Carnival	0	3	0	0	2.00

MINISO Group currently has a consensus target price of $25.13, indicating a potential upside of 33.01%. Given MINISO Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MINISO Group is more favorable than Shoe Carnival.

Summary

MINISO Group beats Shoe Carnival on 12 of the 18 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 Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.