Baozun (NASDAQ:BZUN) & MINISO Group (NYSE:MNSO) Critical Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baozun	-1.26%	2.55%	1.43%
MINISO Group	5.32%	19.41%	7.11%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Baozun and MINISO Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baozun	1	1	2	0	2.25
MINISO Group	1	4	2	1	2.38

Baozun currently has a consensus target price of $3.80, indicating a potential upside of 8.26%. MINISO Group has a consensus target price of $15.27, indicating a potential upside of 49.68%. Given MINISO Group’s stronger consensus rating and higher probable upside, analysts clearly believe MINISO Group is more favorable than Baozun.

Valuation & Earnings

This table compares Baozun and MINISO Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baozun	$1.42 billion	0.14	-$34.62 million	($0.33)	-10.64
MINISO Group	$3.07 billion	1.01	$167.62 million	$0.58	17.59

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

Risk and Volatility

Baozun has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Institutional & Insider Ownership

47.3% of Baozun shares are owned by institutional investors. Comparatively, 17.2% of MINISO Group shares are owned by institutional investors. 59.2% of Baozun shares are owned by company insiders. Comparatively, 73.5% of MINISO Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

MINISO Group beats Baozun on 12 of the 14 factors compared between the two stocks.

About Baozun

Baozun Inc., through its subsidiaries, provides end-to-end e-commerce solutions to brand partners in the People’s Republic of China. The company operates through two segments, E-Commerce and Brand Management (BBM). The E-Commerce segment offers brands’ store operations, customer services and value-added services in logistics and supply chain management, IT, and digital marketing. The Brand Management segment provides brand management, strategic and tactic positioning, branding and marketing, retail and e-commerce operations, supply chain, and logistics and technology services. It serves brand partners in various categories, including apparel and accessories, appliances, electronics, home and furnishings, food and health products, beauty and cosmetics, fast moving consumer goods, mother and baby products, and automobiles. The company was formerly known as Baozun Cayman Inc. and changed its name to Baozun Inc. in March 2015. Baozun Inc. was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.

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.