Financial Review: Dillard’s (NYSE:DDS) vs. MINISO Group (NYSE:MNSO)

Dillard’s (NYSE:DDS) and MINISO Group (NYSE:MNSO) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Insider & Institutional Ownership

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

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 increased its dividend for 14 consecutive years.

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%

Earnings and Valuation

This table compares Dillard’s and MINISO Group”s 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.

Analyst Recommendations

This is a summary of recent recommendations for Dillard’s and MINISO Group, as reported by MarketBeat.com.

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

Volatility & Risk

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

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.