MINISO Group (NYSE:MNSO) vs. Dillard’s (NYSE:DDS) Head-To-Head Comparison

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

Risk and Volatility

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 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Dividends

MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 5.8%. 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.

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%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$22.71 billion	0.17	$167.62 million	$0.94	13.35
Dillard’s	$6.47 billion	1.48	$570.19 million	$42.06	14.59

Dillard’s has lower revenue, but higher 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.

Institutional & Insider 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 company insiders. Comparatively, 34.8% of Dillard’s shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets 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 73.24%. Dillard’s has a consensus price target of $521.33, suggesting a potential downside of 15.03%. Given MINISO Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe MINISO Group is more favorable than Dillard’s.

Summary

Dillard’s beats MINISO Group on 11 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.