Oatly Group (NASDAQ:OTLY) versus China Mengniu Dairy (OTCMKTS:CIADY) Critical Contrast

Oatly Group (NASDAQ:OTLY) and China Mengniu Dairy (OTCMKTS:CIADY) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Oatly Group and China Mengniu Dairy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oatly Group	-20.51%	-66.51%	-13.59%
China Mengniu Dairy	N/A	N/A	N/A

Valuation and Earnings

This table compares Oatly Group and China Mengniu Dairy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oatly Group	$823.67 million	0.47	-$201.95 million	($5.71)	-2.27
China Mengniu Dairy	$12.34 billion	0.66	$14.54 million	N/A	N/A

China Mengniu Dairy has higher revenue and earnings than Oatly Group.

Risk and Volatility

Oatly Group has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, China Mengniu Dairy has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

Institutional and Insider Ownership

68.2% of Oatly Group shares are held by institutional investors. Comparatively, 0.1% of China Mengniu Dairy shares are held by institutional investors. 1.7% of Oatly Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Oatly Group and China Mengniu Dairy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oatly Group	0	1	5	0	2.83
China Mengniu Dairy	0	0	0	0	0.00

Oatly Group currently has a consensus price target of $16.80, suggesting a potential upside of 29.33%. Given Oatly Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Oatly Group is more favorable than China Mengniu Dairy.

About Oatly Group

Oatly Group AB, an oatmilk company, provides a range of plant-based dairy products made from oats in Europe, the Middle East, Africa, the Americas, and Asia. It offers Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, and yogurts; cooking products, including cooking cream, in regular and organic, Crème Fraiche, whipping cream, vanilla custard, and spreads in a variety of flavors; and ready-to-go drinks. The company was formerly known as Havre Global AB and changed its name to Oatly Group AB in March 2021. Oatly Group AB was founded in 1994 and is headquartered in Malmö, Sweden.

About China Mengniu Dairy

China Mengniu Dairy Company Limited, an investment holding company, engages in the manufacture and distribution of dairy products under the MENGNIU brand in the People's Republic of China and internationally. It operates through Liquid Milk Business, Ice Cream Business, Milk Formula Business, and Cheese Business, and Other segments. The Liquid Milk Business segment offers ultra-high temperature milk, milk beverages, yogurt, and fresh milk. The Ice Cream Business segment manufactures and distributes dairy-based ice cream. The Milk Formula Business segment manufactures and distributes milk powder. The Cheese Business segment is involved in manufacture and distribution of cheese. The Other segment engages in manufacture of raw materials for daily products; and trading business. It also produces and sells organic food and formula products for babies and toddlers; and provides commercial factoring and financing guarantee services. China Mengniu Dairy Company Limited was founded in 1999 and is based in Causeway Bay, Hong Kong.