Dillard’s (NYSE:DDS) and MINISO Group (NYSE:MNSO) Head-To-Head Review

MINISO Group (NYSE:MNSO) and Dillard’s (NYSE:DDS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Insider & Institutional Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 67.2% of Dillard’s shares are held by institutional investors. 73.5% of MINISO Group shares are held by insiders. Comparatively, 34.8% of Dillard’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	9.03%	18.98%	7.26%
Dillard’s	10.09%	31.43%	15.63%

Dividends

MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 6.1%. Dillard’s pays an annual dividend of $1.20 per share and has a dividend yield of 0.2%. MINISO Group pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dillard’s pays out 2.9% of its earnings in the form of a dividend. Dillard’s has increased its dividend for 14 consecutive years.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$3.07 billion	1.21	$167.62 million	$0.94	12.71
Dillard’s	$6.47 billion	1.56	$570.19 million	$42.06	15.35

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

Volatility & Risk

MINISO Group has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Dillard’s has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for MINISO Group and Dillard’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	2	3	0	2.33
Dillard’s	2	3	0	0	1.60

MINISO Group currently has a consensus price target of $21.73, suggesting a potential upside of 81.95%. Dillard’s has a consensus price target of $521.33, suggesting a potential downside of 19.27%. Given MINISO Group’s stronger consensus rating and higher possible upside, analysts plainly believe MINISO Group is more favorable than Dillard’s.

Summary

Dillard’s beats MINISO Group on 12 of the 17 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 Dillard’s

Dillard’s, Inc. engages in the retail of fashion apparel, cosmetics, and home furnishings, and other consumer goods. It operates through the Retail Operations and Construction segments. The Retail Operations segment comprises sells cosmetics, ladies’ apparel, ladies’ accessories and lingerie, juniors’ and children’s apparel, men’s apparel and accessories, shoes, and home and furniture products. The Construction segment constructs and remodels stores through CDI Contractors, LLC. The company was founded by William Thomas Dillard in 1938 and is headquartered in Little Rock, AR.