Contrasting MINISO Group (NYSE:MNSO) and Woolworths (OTCMKTS:WLWHY)

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

Risk & Volatility

MINISO Group has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Earnings & Valuation

This table compares MINISO Group and Woolworths”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$2.33 billion	2.45	$364.10 million	$0.97	18.97
Woolworths	$4.42 billion	0.76	$134.61 million	N/A	N/A

MINISO Group has higher earnings, but lower revenue than Woolworths.

Analyst Ratings

This is a breakdown of recent recommendations for MINISO Group and Woolworths, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	2	4	1	2.63
Woolworths	0	0	0	1	4.00

MINISO Group currently has a consensus target price of $25.13, indicating a potential upside of 36.51%. Given MINISO Group’s higher probable upside, equities analysts clearly believe MINISO Group is more favorable than Woolworths.

Dividends

MINISO Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Woolworths pays an annual dividend of $0.06 per share and has a dividend yield of 1.7%. 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 company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Summary

MINISO Group beats Woolworths on 10 of the 14 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 Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.