Head-To-Head Review: Zumiez (NASDAQ:ZUMZ) versus MINISO Group (NYSE:MNSO)

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

Risk & Volatility

MINISO Group has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Zumiez has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 95.5% of Zumiez shares are held by institutional investors. 73.5% of MINISO Group shares are held by company insiders. Comparatively, 20.3% of Zumiez shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$2.33 billion	2.05	$364.10 million	$0.97	15.87
Zumiez	$929.06 million	0.39	$13.38 million	$0.86	24.85

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

Profitability

This table compares MINISO Group and Zumiez’s 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%
Zumiez	1.44%	3.91%	1.90%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	0	3	2	0	2.40
Zumiez	0	3	0	0	2.00

MINISO Group currently has a consensus price target of $24.60, indicating a potential upside of 59.84%. Zumiez has a consensus price target of $18.00, indicating a potential downside of 15.77%. Given MINISO Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe MINISO Group is more favorable than Zumiez.

Summary

MINISO Group beats Zumiez on 11 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 Zumiez

Zumiez Inc. operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times. It operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.