Contrasting MINISO Group (NYSE:MNSO) & Tilly’s (NYSE:TLYS)

MINISO Group (NYSE:MNSO) and Tilly’s (NYSE:TLYS) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 76.4% of Tilly’s shares are held by institutional investors. 73.5% of MINISO Group shares are held by insiders. Comparatively, 2.8% of Tilly’s shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for MINISO Group and Tilly’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	0	3	2	0	2.40
Tilly’s	1	3	0	0	1.75

MINISO Group currently has a consensus price target of $24.60, suggesting a potential upside of 74.37%. Tilly’s has a consensus price target of $2.00, suggesting a potential downside of 48.59%. Given MINISO Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe MINISO Group is more favorable than Tilly’s.

Volatility & Risk

MINISO Group has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Tilly’s has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$3.07 billion	1.43	$167.62 million	$0.54	26.13
Tilly’s	$553.59 million	0.21	-$17.45 million	($0.59)	-6.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	5.56%	11.15%	4.36%
Tilly’s	-3.15%	-21.26%	-5.34%

Summary

MINISO Group beats Tilly’s on 13 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 Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.