Contrasting Remitly Global (NASDAQ:RELY) and MOGU (NYSE:MOGU)

MOGU (NYSE:MOGU) and Remitly Global (NASDAQ:RELY) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

MOGU has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Profitability

This table compares MOGU and Remitly Global’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
Remitly Global	-2.93%	-6.10%	-3.69%

Analyst Recommendations

This is a summary of current ratings and target prices for MOGU and Remitly Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	0.00
Remitly Global	0	1	8	0	2.89

Remitly Global has a consensus target price of $28.13, suggesting a potential upside of 37.80%. Given Remitly Global’s stronger consensus rating and higher probable upside, analysts clearly believe Remitly Global is more favorable than MOGU.

Earnings and Valuation

This table compares MOGU and Remitly Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$138.90 million	0.12	-$8.21 million	N/A	N/A
Remitly Global	$1.26 billion	3.24	-$117.84 million	($0.19)	-107.42

MOGU has higher earnings, but lower revenue than Remitly Global.

Insider & Institutional Ownership

19.1% of MOGU shares are owned by institutional investors. Comparatively, 74.3% of Remitly Global shares are owned by institutional investors. 19.8% of MOGU shares are owned by company insiders. Comparatively, 8.1% of Remitly Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.