Contrasting MINISO Group (NYSE:MNSO) and Dollarama (OTCMKTS:DLMAF)

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

Institutional & Insider Ownership

17.2% of MINISO Group shares are owned by institutional investors. 73.5% of MINISO Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares MINISO Group and Dollarama”s 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	1.01	$167.62 million	$0.58	17.62
Dollarama	$5.21 billion	7.61	$940.70 million	$3.60	41.07

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

Dividends

MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 7.1%. Dollarama pays an annual dividend of $0.34 per share and has a dividend yield of 0.2%. MINISO Group pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dollarama pays out 9.4% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	5.32%	19.41%	7.11%
Dollarama	17.32%	96.41%	17.21%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	1	4	2	1	2.38
Dollarama	0	4	4	5	3.08

MINISO Group presently has a consensus target price of $15.27, indicating a potential upside of 49.46%. Given MINISO Group’s higher possible upside, research analysts clearly believe MINISO Group is more favorable than Dollarama.

Summary

Dollarama beats MINISO Group on 12 of the 16 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 Dollarama

Dollarama Inc. operates a chain of dollar stores in Canada. Its stores offer general merchandise, consumables, and seasonal products. It also sells its products through online store. The company was formerly known as Dollarama Capital Corporation and changed its name to Dollarama Inc. in September 2009. Dollarama Inc. was founded in 1992 and is headquartered in Mount Royal, Canada.