Head to Head Contrast: Baozun (BZUN) and Overstock.com (OSTK)

Baozun (NASDAQ: BZUN) and Overstock.com (NASDAQ:OSTK) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Baozun 5.10% 13.70% 9.15%
Overstock.com -6.30% -49.57% -19.40%

Insider & Institutional Ownership

43.7% of Baozun shares are held by institutional investors. Comparatively, 58.6% of Overstock.com shares are held by institutional investors. 59.2% of Baozun shares are held by company insiders. Comparatively, 28.9% of Overstock.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Baozun has a beta of 3.85, meaning that its share price is 285% more volatile than the S&P 500. Comparatively, Overstock.com has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Earnings and Valuation

This table compares Baozun and Overstock.com’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baozun $637.66 million 4.00 $32.10 million $0.55 83.71
Overstock.com $1.74 billion 0.63 -$109.87 million ($1.81) -20.66

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

Analyst Recommendations

This is a summary of recent ratings for Baozun and Overstock.com, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baozun 0 1 2 0 2.67
Overstock.com 0 0 2 0 3.00

Baozun currently has a consensus target price of $37.33, suggesting a potential downside of 18.91%. Overstock.com has a consensus target price of $62.50, suggesting a potential upside of 67.11%. Given Overstock.com’s stronger consensus rating and higher probable upside, analysts plainly believe Overstock.com is more favorable than Baozun.

Summary

Baozun beats Overstock.com on 9 of the 13 factors compared between the two stocks.

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.

About Overstock.com

Overstock.com, Inc. is an online retailer and incubator of blockchain technology. Through its online retail business, the Company offers a range of price-competitive brand name, non-brand name and closeout products, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, health and beauty products, electronics and computers, and sporting goods. It operates Retail and Medici businesses. Its Retail business consists of its Direct and Partner segments. Its Other segment consists of Medici. The Company also sells various books, magazines, compact discs (CDs), digital versatile discs (DVDs) and video games. The Company sells these products and services through its Internet Websites located at www.overstock.com, www.o.co and www.o.biz. The Company’s other offerings include Worldstock Fair Trade, Main Street Revolution, Farmers Market, Pet Adoptions, Insurance and Supplier Oasis.

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