Financial Contrast: MOGU (NYSE:MOGU) versus Children’s Place (NASDAQ:PLCE)

MOGU (NYSE:MOGU) and Children’s Place (NASDAQ:PLCE) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for MOGU and Children’s Place, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	0.00
Children’s Place	0	1	0	0	2.00

Children’s Place has a consensus target price of $7.00, suggesting a potential upside of 10.06%. Given Children’s Place’s stronger consensus rating and higher probable upside, analysts plainly believe Children’s Place is more favorable than MOGU.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
Children’s Place	-2.04%	-10.32%	-2.45%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$19.46 million	1.53	-$8.62 million	N/A	N/A
Children’s Place	$1.39 billion	0.10	-$57.82 million	($0.86)	-7.40

MOGU has higher earnings, but lower revenue than Children’s Place.

Risk & Volatility

MOGU has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Children’s Place has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Institutional & Insider Ownership

19.1% of MOGU shares are held by institutional investors. 19.8% of MOGU shares are held by insiders. Comparatively, 0.6% of Children’s Place shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

MOGU beats Children’s Place on 7 of the 11 factors compared between the two stocks.

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.

About Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.