Analyzing MINISO Group (NYSE:MNSO) and Monotaro (OTCMKTS:MONOY)

MINISO Group (NYSE:MNSO) and Monotaro (OTCMKTS:MONOY) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Risk and Volatility

MINISO Group has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Monotaro has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$23.55 billion	0.11	$167.62 million	$0.58	15.18
Monotaro	$2.23 billion	2.81	$217.31 million	$0.46	27.54

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

Institutional and Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 0.1% of Monotaro shares are held by institutional investors. 73.5% of MINISO Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 8.3%. Monotaro pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. MINISO Group pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monotaro pays out 30.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for MINISO Group and Monotaro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	4	2	1	2.38
Monotaro	0	1	0	0	2.00

MINISO Group presently has a consensus target price of $15.27, indicating a potential upside of 73.48%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts plainly believe MINISO Group is more favorable than Monotaro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	5.32%	19.41%	7.11%
Monotaro	9.70%	29.68%	19.14%

Summary

MINISO Group beats Monotaro on 9 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 Monotaro

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.