Financial Survey: MINISO Group (NYSE:MNSO) versus Xcel Brands (NASDAQ:XELB)

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

Volatility and Risk

MINISO Group has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares MINISO Group and Xcel Brands”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	$2.33 billion	2.49	$364.10 million	$1.11	16.68
Xcel Brands	$8.26 million	0.46	-$22.40 million	($7.98)	-0.20

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

Insider and Institutional Ownership

17.2% of MINISO Group shares are owned by institutional investors. Comparatively, 18.6% of Xcel Brands shares are owned by institutional investors. 73.5% of MINISO Group shares are owned by insiders. Comparatively, 40.3% of Xcel Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares MINISO Group and Xcel Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MINISO Group	13.85%	24.23%	12.84%
Xcel Brands	-255.14%	-13.93%	-8.30%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MINISO Group and Xcel Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	2	3	2	2.75
Xcel Brands	0	1	0	0	2.00

MINISO Group presently has a consensus price target of $24.53, suggesting a potential upside of 32.42%. Given MINISO Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe MINISO Group is more favorable than Xcel Brands.

Summary

MINISO Group beats Xcel Brands 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 Xcel Brands

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.