Analyzing MOGU (NYSE:MOGU) and Citi Trends (NASDAQ:CTRN)

Citi Trends (NASDAQ:CTRN) and MOGU (NYSE:MOGU) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Citi Trends and MOGU, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citi Trends	0	0	2	0	3.00
MOGU	0	0	0	0	0.00

Citi Trends currently has a consensus target price of $39.50, indicating a potential upside of 26.77%. Given Citi Trends’ stronger consensus rating and higher probable upside, analysts clearly believe Citi Trends is more favorable than MOGU.

Institutional & Insider Ownership

19.1% of MOGU shares are owned by institutional investors. 10.7% of Citi Trends shares are owned by company insiders. Comparatively, 19.8% of MOGU shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Citi Trends and MOGU”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citi Trends	$753.08 million	0.34	-$43.17 million	($2.00)	-15.58
MOGU	$19.46 million	1.24	-$8.62 million	N/A	N/A

MOGU has lower revenue, but higher earnings than Citi Trends.

Risk & Volatility

Citi Trends has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500. Comparatively, MOGU has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares Citi Trends and MOGU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citi Trends	-2.13%	-21.25%	-5.42%
MOGU	N/A	N/A	N/A

Summary

MOGU beats Citi Trends on 7 of the 12 factors compared between the two stocks.

About Citi Trends

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.

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.