Comparing MOGU (NYSE:MOGU) and Zalando (OTCMKTS:ZLNDY)

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

Valuation & Earnings

This table compares Zalando and MOGU”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zalando	$11.44 billion	0.66	$271.71 million	$0.52	27.67
MOGU	$19.46 million	0.90	-$8.62 million	N/A	N/A

Zalando has higher revenue and earnings than MOGU.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zalando	2.07%	8.67%	2.87%
MOGU	N/A	N/A	N/A

Institutional and Insider Ownership

19.1% of MOGU shares are owned by institutional investors. 19.8% of MOGU shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Zalando has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, MOGU has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Zalando and MOGU, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	1	1	3	0	2.40
MOGU	1	0	0	0	1.00

Summary

Zalando beats MOGU on 8 of the 11 factors compared between the two stocks.

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.

About MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.