Comparing MOGU (NYSE:MOGU) and Priority Technology (NASDAQ:PRTH)

MOGU (NYSE:MOGU) and Priority Technology (NASDAQ:PRTH) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for MOGU and Priority Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	N/A
Priority Technology	0	1	1	0	2.50

Priority Technology has a consensus price target of $8.00, suggesting a potential upside of 63.27%. Given Priority Technology’s higher possible upside, analysts clearly believe Priority Technology is more favorable than MOGU.

Volatility & Risk

MOGU has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Priority Technology has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

19.1% of MOGU shares are owned by institutional investors. Comparatively, 11.5% of Priority Technology shares are owned by institutional investors. 19.8% of MOGU shares are owned by company insiders. Comparatively, 76.3% of Priority Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares MOGU and Priority Technology’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$160.34 million	0.11	-$8.21 million	N/A	N/A
Priority Technology	$755.61 million	0.50	-$1.31 million	($0.58)	-8.45

Priority Technology has higher revenue and earnings than MOGU.

Profitability

This table compares MOGU and Priority Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
Priority Technology	0.74%	-9.60%	0.90%

Summary

Priority Technology beats MOGU on 9 of the 11 factors compared between the two stocks.

About MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.

About Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.