Critical Analysis: Seven and I (OTCMKTS:SVNDY) versus MINISO Group (NYSE:MNSO)

Seven and I (OTCMKTS:SVNDY) and MINISO Group (NYSE:MNSO) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Seven and I and MINISO Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	2	0	0	2.00
MINISO Group	1	4	2	1	2.38

MINISO Group has a consensus price target of $15.27, indicating a potential upside of 46.66%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts clearly believe MINISO Group is more favorable than Seven and I.

Valuation & Earnings

This table compares Seven and I 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
Seven and I	$69.63 billion	0.45	$1.96 billion	$0.80	16.99
MINISO Group	$3.07 billion	1.03	$167.62 million	$0.58	17.96

Seven and I has higher revenue and earnings than MINISO Group. Seven and I 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 Seven and I and MINISO Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven and I	2.89%	8.20%	3.23%
MINISO Group	5.32%	19.41%	7.11%

Volatility & Risk

Seven and I has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Seven and I shares are owned by institutional investors. Comparatively, 17.2% of MINISO Group shares are owned by institutional investors. 73.5% of MINISO Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Seven and I pays an annual dividend of $0.09 per share and has a dividend yield of 0.7%. MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 7.0%. Seven and I pays out 11.2% of its earnings in the form of a dividend. MINISO Group pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

MINISO Group beats Seven and I on 12 of the 17 factors compared between the two stocks.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

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.