Critical Analysis: Li Ning (OTCMKTS:LNNGY) & MINISO Group (NYSE:MNSO)

Li Ning (OTCMKTS:LNNGY) and MINISO Group (NYSE:MNSO) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Valuation and Earnings

This table compares Li Ning and MINISO Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Li Ning	$3.99 billion	1.58	$419.10 million	N/A	N/A
MINISO Group	$2.33 billion	2.59	$364.10 million	$0.97	20.06

Li Ning has higher revenue and earnings than MINISO Group.

Risk & Volatility

Li Ning has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Dividends

Li Ning pays an annual dividend of $2.22 per share and has a dividend yield of 3.6%. MINISO Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. MINISO Group pays out 57.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

17.2% of MINISO Group shares are owned by institutional investors. 73.5% of MINISO Group shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Li Ning and MINISO Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Li Ning	0	1	0	0	2.00
MINISO Group	0	2	4	1	2.86

MINISO Group has a consensus target price of $25.13, indicating a potential upside of 29.11%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts clearly believe MINISO Group is more favorable than Li Ning.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Li Ning	N/A	N/A	N/A
MINISO Group	10.78%	20.02%	8.59%

Summary

MINISO Group beats Li Ning on 10 of the 15 factors compared between the two stocks.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.

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.