Critical Contrast: Zalando (OTCMKTS:ZLNDY) versus MOGU (NYSE:MOGU)

MOGU (NYSE:MOGU) and Zalando (OTCMKTS:ZLNDY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

19.1% of MOGU shares are held by institutional investors. 19.8% of MOGU shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for MOGU and Zalando, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	1	0	0	0	1.00
Zalando	1	1	3	0	2.40

Profitability

This table compares MOGU and Zalando’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
Zalando	2.07%	8.67%	2.87%

Risk & Volatility

MOGU has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Zalando has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Earnings & Valuation

This table compares MOGU and Zalando”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$19.46 million	0.92	-$8.62 million	N/A	N/A
Zalando	$11.44 billion	0.59	$271.71 million	$0.52	24.58

Zalando has higher revenue and earnings than MOGU.

Summary

Zalando beats MOGU on 8 of the 11 factors compared between the two stocks.

About MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.