Head to Head Contrast: PCM (PCMI) vs. Baozun (BZUN)

PCM (NASDAQ: PCMI) and Baozun (NASDAQ:BZUN) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

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This is a summary of current ratings and target prices for PCM and Baozun, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PCM 0 0 2 0 3.00
Baozun 0 1 2 0 2.67

PCM currently has a consensus target price of $12.00, suggesting a potential upside of 46.34%. Baozun has a consensus target price of $37.33, suggesting a potential downside of 19.33%. Given PCM’s stronger consensus rating and higher possible upside, equities analysts plainly believe PCM is more favorable than Baozun.

Institutional and Insider Ownership

57.6% of PCM shares are held by institutional investors. Comparatively, 43.7% of Baozun shares are held by institutional investors. 24.0% of PCM shares are held by company insiders. Comparatively, 59.2% of Baozun 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.

Profitability

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

Net Margins Return on Equity Return on Assets
PCM 0.14% 11.33% 2.21%
Baozun 5.10% 13.70% 9.15%

Earnings and Valuation

This table compares PCM and Baozun’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PCM $2.19 billion 0.04 $3.09 million $1.08 7.59
Baozun $637.66 million 4.02 $32.10 million $0.55 84.15

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

Volatility & Risk

PCM has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Baozun has a beta of 3.85, indicating that its stock price is 285% more volatile than the S&P 500.

Summary

Baozun beats PCM on 8 of the 13 factors compared between the two stocks.

About PCM

PCM, Inc., through its subsidiaries, operates as a multi-vendor provider of technology products and solutions in the United States and the rest of Europe. The company operates through four segments: Commercial, Public Sector, Canada, and United Kingdom. It primarily sells device products, servers, storage products, network products, printers, and related accessories and devices. The company also provides managed services, cloud-based services, consulting, IT management and other IT services, and technical certifications and operational expertise in various practice areas; and selection, implementation, and IT solutions comprising security, virtualization, data services, unified communications, and infrastructure, as well as software asset management and software value-added reseller services. PCM, Inc. markets its products, services, and solutions to individuals; commercial businesses; state, local, and federal governments; and educational institutions through its sales force, e-commerce channels, and technology services teams, as well as cloud data centers, field services organizations, and online extranets. The company was formerly known as PC Mall, Inc. and changed its name to PCM, Inc. in December 2012. PCM, Inc. was founded in 1987 and is headquartered in El Segundo, California.

About Baozun

Baozun Inc. provides e-commerce solutions for brand partners in the People's Republic of China. It offers end-to-end e-commerce solutions, including IT infrastructure setup and integration, online store design and setup, visual merchandizing and marketing campaigns, store operations, customer services, warehousing, and order fulfillment. The company also operates Maikefeng mobile application that offers various branded products. It serves brand partners in the apparel, appliances, electronics, home and furnishings, food and health products, cosmetics, fast moving consumer goods, insurance, and automobile categories. 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.

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