MINISO Group (NYSE:MNSO) & Boot Barn (NYSE:BOOT) Critical Analysis

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

Institutional and Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. 0.7% of Boot Barn shares are held by company insiders. Comparatively, 73.5% of MINISO Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Boot Barn and MINISO Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boot Barn	$1.91 billion	2.81	$180.94 million	$6.76	26.10
MINISO Group	$2.33 billion	2.49	$364.10 million	$0.97	19.34

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Boot Barn and MINISO Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boot Barn	0	4	12	1	2.82
MINISO Group	0	2	4	1	2.86

Boot Barn currently has a consensus target price of $198.00, indicating a potential upside of 12.23%. MINISO Group has a consensus target price of $25.13, indicating a potential upside of 33.93%. Given MINISO Group’s stronger consensus rating and higher possible upside, analysts clearly believe MINISO Group is more favorable than Boot Barn.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boot Barn	10.05%	18.11%	9.94%
MINISO Group	10.78%	20.02%	8.59%

Risk and Volatility

Boot Barn has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Summary

MINISO Group beats Boot Barn on 8 of the 14 factors compared between the two stocks.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.

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.