Analyzing MOGU (NYSE:MOGU) & Visa (NYSE:V)

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

Insider and Institutional Ownership

19.1% of MOGU shares are owned by institutional investors. Comparatively, 82.2% of Visa shares are owned by institutional investors. 19.8% of MOGU shares are owned by insiders. Comparatively, 0.2% of Visa shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$160.34 million	0.10	-$8.21 million	N/A	N/A
Visa	$34.92 billion	15.27	$17.27 billion	$8.95	32.58

Visa has higher revenue and earnings than MOGU.

Analyst Ratings

This is a summary of recent ratings and price targets for MOGU and Visa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	N/A
Visa	0	6	23	1	2.83

Visa has a consensus target price of $310.22, indicating a potential upside of 6.38%. Given Visa’s higher probable upside, analysts plainly believe Visa is more favorable than MOGU.

Risk & Volatility

MOGU has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares MOGU and Visa’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
Visa	54.72%	51.94%	21.66%

Summary

Visa beats MOGU on 11 of the 12 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 Visa

Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.