Comparing MINISO Group (NYSE:MNSO) & Rent the Runway (NASDAQ:RENT)

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

Volatility & Risk

Rent the Runway has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	3.37%	N/A	-36.65%
MINISO Group	10.78%	20.02%	8.59%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rent the Runway and MINISO Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	2	0	0	1.67
MINISO Group	1	2	4	1	2.63

MINISO Group has a consensus target price of $25.13, indicating a potential upside of 33.75%. Given MINISO Group’s stronger consensus rating and higher possible upside, analysts plainly believe MINISO Group is more favorable than Rent the Runway.

Insider & Institutional Ownership

73.1% of Rent the Runway shares are held by institutional investors. Comparatively, 17.2% of MINISO Group shares are held by institutional investors. 8.2% of Rent the Runway shares are held by insiders. Comparatively, 73.5% of MINISO Group shares are held 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.

Earnings & Valuation

This table compares Rent the Runway and MINISO Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rent the Runway	$306.20 million	0.78	-$69.90 million	($2.92)	-2.46
MINISO Group	$19.90 billion	0.29	$364.10 million	$0.97	19.37

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

Summary

MINISO Group beats Rent the Runway on 12 of the 15 factors compared between the two stocks.

About Rent the Runway

Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.

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.