Fossil Group (NASDAQ:FOSL) and MINISO Group (NYSE:MNSO) Critical Survey

Fossil Group (NASDAQ:FOSL) and MINISO Group (NYSE:MNSO) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider & Institutional Ownership

61.1% of Fossil Group shares are owned by institutional investors. Comparatively, 17.2% of MINISO Group shares are owned by institutional investors. 2.9% of Fossil Group shares are owned by company insiders. Comparatively, 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 company will outperform the market over the long term.

Risk and Volatility

Fossil Group has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Earnings and Valuation

This table compares Fossil Group and MINISO Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fossil Group	$1.15 billion	0.19	-$102.67 million	($1.27)	-3.17
MINISO Group	$2.33 billion	2.24	$364.10 million	$0.97	17.40

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Fossil Group and MINISO Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fossil Group	1	1	2	0	2.25
MINISO Group	0	3	3	0	2.50

Fossil Group currently has a consensus price target of $6.00, suggesting a potential upside of 48.88%. MINISO Group has a consensus price target of $23.73, suggesting a potential upside of 40.59%. Given Fossil Group’s higher probable upside, analysts clearly believe Fossil Group is more favorable than MINISO Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fossil Group	-6.32%	-18.08%	-3.11%
MINISO Group	10.78%	20.02%	8.59%

Summary

MINISO Group beats Fossil Group on 11 of the 14 factors compared between the two stocks.

About Fossil Group

Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.

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.