Advantage Solutions (NASDAQ:ADV) versus MOGU (NYSE:MOGU) Head-To-Head Survey

MOGU (NYSE:MOGU) and Advantage Solutions (NASDAQ:ADV) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Risk and Volatility

MOGU has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Advantage Solutions has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

19.1% of MOGU shares are owned by institutional investors. Comparatively, 49.8% of Advantage Solutions shares are owned by institutional investors. 19.8% of MOGU shares are owned by company insiders. Comparatively, 6.2% of Advantage Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares MOGU and Advantage Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$138.90 million	0.13	-$8.21 million	N/A	N/A
Advantage Solutions	$3.57 billion	0.14	-$63.26 million	($1.01)	-1.54

MOGU has higher earnings, but lower revenue than Advantage Solutions.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MOGU and Advantage Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	0.00
Advantage Solutions	0	0	1	0	3.00

Advantage Solutions has a consensus target price of $3.50, indicating a potential upside of 124.36%. Given Advantage Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Advantage Solutions is more favorable than MOGU.

Profitability

This table compares MOGU and Advantage Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
Advantage Solutions	-3.32%	-7.58%	-2.17%

Summary

Advantage Solutions beats MOGU on 7 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 Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.