MINISO Group (NYSE:MNSO) & Buckle (NYSE:BKE) Critical Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	13.85%	24.23%	12.84%
Buckle	15.95%	43.13%	20.57%

Insider & Institutional Ownership

17.2% of MINISO Group shares are owned by institutional investors. Comparatively, 53.9% of Buckle shares are owned by institutional investors. 73.5% of MINISO Group shares are owned by company insiders. Comparatively, 39.8% of Buckle shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares MINISO Group and Buckle”s gross 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	2.46	$364.10 million	$1.11	16.50
Buckle	$1.22 billion	1.98	$195.47 million	$3.89	12.10

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

Dividends

MINISO Group pays an annual dividend of $0.63 per share and has a dividend yield of 3.4%. Buckle pays an annual dividend of $1.40 per share and has a dividend yield of 3.0%. MINISO Group pays out 56.8% of its earnings in the form of a dividend. Buckle pays out 36.0% 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for MINISO Group and Buckle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	2	3	2	2.75
Buckle	0	1	0	0	2.00

MINISO Group currently has a consensus target price of $24.53, suggesting a potential upside of 33.94%. Buckle has a consensus target price of $41.00, suggesting a potential downside of 12.88%. Given MINISO Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe MINISO Group is more favorable than Buckle.

Volatility & Risk

MINISO Group has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Buckle has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Summary

MINISO Group beats Buckle on 10 of the 17 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 Buckle

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Sterling & Stitch, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, Modish Rebel, Maven Co-op, and Veece. The company provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991.The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.