Critical Analysis: Baozun (NASDAQ:BZUN) vs. Coupang (NYSE:CPNG)

Coupang (NYSE:CPNG) and Baozun (NASDAQ:BZUN) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

83.7% of Coupang shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 12.8% of Coupang 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, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Coupang and Baozun, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	2	2	6	0	2.40
Baozun	1	1	2	0	2.25

Coupang presently has a consensus price target of $23.41, indicating a potential upside of 50.87%. Baozun has a consensus price target of $3.80, indicating a potential upside of 8.88%. Given Coupang’s stronger consensus rating and higher possible upside, equities analysts plainly believe Coupang is more favorable than Baozun.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coupang	-3.77%	-21.51%	-4.36%
Baozun	-1.26%	2.55%	1.43%

Valuation & Earnings

This table compares Coupang and Baozun”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$36.16 billion	0.77	$208.00 million	($0.76)	-20.42
Baozun	$1.42 billion	0.14	-$34.62 million	($0.33)	-10.58

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

Risk and Volatility

Coupang has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Summary

Coupang beats Baozun on 8 of the 14 factors compared between the two stocks.

About Coupang

Coupang, Inc. is an e-commerce and technology company best known for its online marketplace in South Korea. The platform offers products across categories such as electronics, apparel, household goods and groceries, combining third-party sellers with retail operations and a network of fulfillment and delivery services. Its services include Rocket Delivery for rapid shipping, Rocket Fresh for grocery delivery and Coupang Eats for food delivery. Coupang also offers Coupang Play, a video-streaming service, and operates a paid membership program called Rocket Wow.

About Baozun

Baozun Inc. (NASDAQ: BZUN) is a China-based e-commerce services company that helps domestic and international brands establish, operate and grow their online businesses. The company provides an integrated suite of services covering digital storefront development, online sales operations, digital marketing, customer service, warehousing and logistics. Baozun supports brands across major Chinese e-commerce platforms and other digital channels. Its services may be delivered through different operating models, including technology and service arrangements, distribution and online retail solutions.