Critical Analysis: Burberry Group (OTCMKTS:BURBY) & MINISO Group (NYSE:MNSO)

Burberry Group (OTCMKTS:BURBY) and MINISO Group (NYSE:MNSO) are both mid-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Risk and Volatility

Burberry Group has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Earnings & Valuation

This table compares Burberry Group 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
Burberry Group	$3.14 billion	1.87	-$95.68 million	N/A	N/A
MINISO Group	$2.33 billion	2.79	$364.10 million	$1.11	18.84

MINISO Group has lower revenue, but higher earnings than Burberry Group.

Insider and Institutional Ownership

10.3% of Burberry Group shares are held by institutional investors. Comparatively, 17.2% of MINISO Group shares are held by institutional investors. 73.5% of MINISO Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Burberry Group and MINISO Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burberry Group	1	1	1	5	3.25
MINISO Group	1	2	3	2	2.75

MINISO Group has a consensus target price of $24.5250, suggesting a potential upside of 17.25%. Given MINISO Group’s higher probable upside, analysts plainly believe MINISO Group is more favorable than Burberry Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Burberry Group	N/A	N/A	N/A
MINISO Group	13.85%	24.23%	12.84%

Summary

MINISO Group beats Burberry Group on 9 of the 13 factors compared between the two stocks.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.

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.