Head to Head Contrast: MINISO Group (NYSE:MNSO) and Dillard’s (NYSE:DDS)

Dillard’s (NYSE:DDS) and MINISO Group (NYSE:MNSO) 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 analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Institutional and Insider Ownership

67.2% of Dillard’s shares are held by institutional investors. Comparatively, 17.2% of MINISO Group shares are held by institutional investors. 34.8% of Dillard’s shares are held by company insiders. Comparatively, 73.5% of MINISO Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Dillard’s has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Dillard’s and MINISO Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dillard’s	2	3	0	0	1.60
MINISO Group	1	2	3	0	2.33

Dillard’s presently has a consensus target price of $521.33, suggesting a potential downside of 15.55%. MINISO Group has a consensus target price of $21.73, suggesting a potential upside of 75.48%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts clearly believe MINISO Group is more favorable than Dillard’s.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dillard’s	10.09%	31.43%	15.63%
MINISO Group	9.03%	18.98%	7.26%

Valuation & Earnings

This table compares Dillard’s and MINISO Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dillard’s	$6.47 billion	1.49	$570.19 million	$42.06	14.68
MINISO Group	$3.07 billion	1.25	$167.62 million	$0.94	13.18

Dillard’s has higher revenue and 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.

Dividends

Dillard’s pays an annual dividend of $1.20 per share and has a dividend yield of 0.2%. MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 5.9%. Dillard’s pays out 2.9% of its earnings in the form of a dividend. 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 has raised its dividend for 14 consecutive years.

Summary

Dillard’s beats MINISO Group on 12 of the 17 factors compared between the two stocks.

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.

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.