Contrasting Serve Robotics (NASDAQ:SERV) and Baozun (NASDAQ:BZUN)

Baozun (NASDAQ:BZUN) and Serve Robotics (NASDAQ:SERV) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

47.3% of Baozun shares are held by institutional investors. 59.2% of Baozun shares are held by insiders. Comparatively, 5.5% of Serve Robotics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Baozun has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Serve Robotics has a beta of -0.19, meaning that its share price is 119% less volatile than the S&P 500.

Profitability

This table compares Baozun and Serve Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baozun	-1.93%	-4.60%	-1.89%
Serve Robotics	-3,726.00%	-36.47%	-34.93%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Baozun and Serve Robotics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baozun	0	0	1	0	3.00
Serve Robotics	0	1	4	1	3.00

Baozun presently has a consensus price target of $4.20, indicating a potential upside of 8.81%. Serve Robotics has a consensus price target of $17.75, indicating a potential upside of 78.57%. Given Serve Robotics’ higher probable upside, analysts clearly believe Serve Robotics is more favorable than Baozun.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baozun	$1.29 billion	0.17	-$18.68 million	($0.44)	-8.77
Serve Robotics	$1.81 million	328.84	-$39.19 million	($1.15)	-8.64

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

Summary

Baozun beats Serve Robotics on 9 of the 14 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 Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.