Critical Review: MOGU (NYSE:MOGU) & Capri (NYSE:CPRI)

MOGU (NYSE:MOGU) and Capri (NYSE:CPRI) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares MOGU and Capri’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
Capri	-29.55%	-138.53%	-8.48%

Earnings and Valuation

This table compares MOGU and Capri”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$19.46 million	0.96	-$8.62 million	N/A	N/A
Capri	$4.44 billion	0.70	-$1.18 billion	($9.83)	-2.67

MOGU has higher earnings, but lower revenue than Capri.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MOGU and Capri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	1	0	0	0	1.00
Capri	1	6	8	0	2.47

Capri has a consensus target price of $26.08, indicating a potential downside of 0.71%. Given Capri’s stronger consensus rating and higher probable upside, analysts clearly believe Capri is more favorable than MOGU.

Volatility & Risk

MOGU has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Capri has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

19.1% of MOGU shares are owned by institutional investors. Comparatively, 84.3% of Capri shares are owned by institutional investors. 19.8% of MOGU shares are owned by insiders. Comparatively, 2.3% of Capri shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.