Head-To-Head Analysis: MINISO Group (NYSE:MNSO) versus Baozun (NASDAQ:BZUN)

by · The Markets Daily

MINISO Group (NYSE:MNSO – Get Free Report) and Baozun (NASDAQ:BZUN – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 73.5% of MINISO Group shares are held by company insiders. Comparatively, 59.2% of Baozun shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations for MINISO Group and Baozun, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
MINISO Group14212.38
Baozun11202.25

MINISO Group currently has a consensus price target of $15.27, suggesting a potential upside of 49.53%. Baozun has a consensus price target of $3.80, suggesting a potential upside of 2.15%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts plainly believe MINISO Group is more favorable than Baozun.

Earnings & Valuation

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
MINISO Group$23.55 billion0.13$167.62 million$0.5817.61
Baozun$1.42 billion0.15-$34.62 million($0.33)-11.27

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

Risk and Volatility

MINISO Group has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Baozun has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
MINISO Group5.32%19.41%7.11%
Baozun-1.26%2.55%1.43%

Summary

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

About MINISO Group

(Get Free Report)

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 Baozun

(Get Free Report)

Baozun Inc., through its subsidiaries, provides end-to-end e-commerce solutions to brand partners in the People’s Republic of China. The company operates through two segments, E-Commerce and Brand Management (BBM). The E-Commerce segment offers brands’ store operations, customer services and value-added services in logistics and supply chain management, IT, and digital marketing. The Brand Management segment provides brand management, strategic and tactic positioning, branding and marketing, retail and e-commerce operations, supply chain, and logistics and technology services. It serves brand partners in various categories, including apparel and accessories, appliances, electronics, home and furnishings, food and health products, beauty and cosmetics, fast moving consumer goods, mother and baby products, and automobiles. The company was formerly known as Baozun Cayman Inc. and changed its name to Baozun Inc. in March 2015. Baozun Inc. was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.