Rakuten Group (OTCMKTS:RKUNF) and MINISO Group (NYSE:MNSO) Head to Head Review

MINISO Group (NYSE:MNSO) and Rakuten Group (OTCMKTS:RKUNF) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Dividends

MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 7.1%. Rakuten Group pays an annual dividend of $2.70 per share and has a dividend yield of 55.0%. 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. Rakuten Group pays out 9.6% of its earnings in the form of a dividend. Rakuten Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 18.9% of Rakuten Group 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MINISO Group	$3.07 billion	1.04	$167.62 million	$0.94	10.99
Rakuten Group	N/A	N/A	N/A	$27.96	0.18

MINISO Group has higher revenue and earnings than Rakuten Group. Rakuten Group 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 Ratings

This is a summary of recent recommendations and price targets for MINISO Group and Rakuten Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	1	2	0	2.25
Rakuten Group	0	0	0	0	0.00

MINISO Group presently has a consensus price target of $19.50, suggesting a potential upside of 88.77%. Given MINISO Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe MINISO Group is more favorable than Rakuten Group.

Profitability

This table compares MINISO Group and Rakuten Group’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%
Rakuten Group	N/A	N/A	N/A

Summary

MINISO Group beats Rakuten Group on 9 of the 13 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 Rakuten Group

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.