Baozun (NASDAQ:BZUN) versus ServiceNow (NYSE:NOW) Head-To-Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baozun	-1.93%	-4.46%	-1.84%
ServiceNow	13.41%	17.34%	8.38%

Valuation and Earnings

This table compares Baozun and ServiceNow”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baozun	$1.29 billion	0.13	-$18.68 million	($0.43)	-6.84
ServiceNow	$10.98 billion	18.22	$1.43 billion	$7.36	131.36

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

Analyst Recommendations

This is a breakdown of recent recommendations for Baozun and ServiceNow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baozun	0	1	1	0	2.50
ServiceNow	1	2	30	2	2.94

Baozun currently has a consensus target price of $3.20, suggesting a potential upside of 8.84%. ServiceNow has a consensus target price of $1,073.13, suggesting a potential upside of 11.00%. Given ServiceNow’s stronger consensus rating and higher possible upside, analysts clearly believe ServiceNow is more favorable than Baozun.

Insider and Institutional Ownership

47.3% of Baozun shares are held by institutional investors. Comparatively, 87.2% of ServiceNow shares are held by institutional investors. 59.2% of Baozun shares are held by insiders. Comparatively, 0.4% of ServiceNow shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Baozun has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Summary

ServiceNow beats Baozun on 14 of the 15 factors compared between the two stocks.

About Baozun

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.

About ServiceNow

ServiceNow, Inc. provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools. It also provides asset management, cloud observability, integrated risk management; information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; strategic portfolio management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT asset management; and security operations that connects with internal and third party. In addition, the company offers integrated risk management product to manage risk and resilience; environmental, social and governance management product; human resources, legal, and workplace service delivery products; customer service management product; and field service management applications. Further, the company provides app engine product; automation engine; platform privacy and security product; and source-to-pay operations. It serves to government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through service providers and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.