Critical Contrast: Torrid (NYSE:CURV) vs. MINISO Group (NYSE:MNSO)

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

Insider & Institutional Ownership

17.2% of MINISO Group shares are held by institutional investors. Comparatively, 81.8% of Torrid shares are held by institutional investors. 73.5% of MINISO Group shares are held by insiders. Comparatively, 9.8% of Torrid shares are held 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.

Risk and Volatility

MINISO Group has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Torrid has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MINISO Group	10.78%	20.02%	8.59%
Torrid	-0.18%	-1.69%	-0.43%

Valuation and Earnings

This table compares MINISO Group and Torrid”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	2.61	$364.10 million	$0.97	20.25
Torrid	$1.10 billion	0.09	$16.32 million	($0.01)	-103.50

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MINISO Group	0	2	4	1	2.86
Torrid	4	3	1	0	1.63

MINISO Group presently has a consensus target price of $25.13, suggesting a potential upside of 27.90%. Torrid has a consensus target price of $1.44, suggesting a potential upside of 39.13%. Given Torrid’s higher probable upside, analysts plainly believe Torrid is more favorable than MINISO Group.

Summary

MINISO Group beats Torrid on 12 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 Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.