Head to Head Review: Baozun (NASDAQ:BZUN) vs. Groupon (NASDAQ:GRPN)

Groupon (NASDAQ:GRPN – Get Free Report) and Baozun (NASDAQ:BZUN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

Groupon has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Baozun has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Groupon and Baozun, as reported by MarketBeat.

Groupon currently has a consensus target price of $26.00, suggesting a potential upside of 33.13%. Baozun has a consensus target price of $3.80, suggesting a potential upside of 25.83%. Given Groupon’s higher possible upside, equities analysts plainly believe Groupon is more favorable than Baozun.

Valuation and Earnings

This table compares Groupon and Baozun”s revenue, earnings per share and valuation.

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

Insider & Institutional Ownership

90.0% of Groupon shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 36.6% of Groupon shares are held by company insiders. Comparatively, 59.2% of Baozun shares are held 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.

Profitability

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

Summary

Baozun beats Groupon on 10 of the 14 factors compared between the two stocks.

About Groupon

(Get Free Report)

Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants. It serves customers through its mobile applications and websites. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.

About Baozun

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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.