MINISO Group (NYSE:MNSO) versus Rent the Runway (NASDAQ:RENT) Financial Review

MINISO Group (NYSE:MNSO) and Rent the Runway (NASDAQ:RENT) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$2.33 billion	2.45	$364.10 million	$0.97	19.02
Rent the Runway	$306.20 million	0.77	-$69.90 million	($2.92)	-2.42

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MINISO Group and Rent the Runway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	2	4	1	2.63
Rent the Runway	1	2	0	0	1.67

MINISO Group presently has a consensus target price of $25.13, suggesting a potential upside of 36.18%. Given MINISO Group’s stronger consensus rating and higher possible upside, research analysts plainly believe MINISO Group is more favorable than Rent the Runway.

Volatility and Risk

MINISO Group has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Rent the Runway has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	10.78%	20.02%	8.59%
Rent the Runway	3.37%	N/A	-36.65%

Institutional and Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 73.1% of Rent the Runway shares are held by institutional investors. 73.5% of MINISO Group shares are held by company insiders. Comparatively, 8.2% of Rent the Runway 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.

Summary

MINISO Group beats Rent the Runway on 13 of the 15 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 Rent the Runway

Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.