Stem (NYSE:STEM) and Baozun (NASDAQ:BZUN) Head-To-Head Contrast

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

Earnings and Valuation

This table compares Stem and Baozun”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stem	$156.00 million	1.26	-$854.01 million	($28.99)	-0.81
Baozun	$1.29 billion	0.16	-$18.68 million	($0.44)	-7.98

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

Analyst Recommendations

This is a summary of recent recommendations for Stem and Baozun, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	1	7	0	0	1.88
Baozun	1	0	1	0	2.00

Stem presently has a consensus target price of $12.14, indicating a potential downside of 48.06%. Baozun has a consensus target price of $4.20, indicating a potential upside of 19.66%. Given Baozun’s stronger consensus rating and higher probable upside, analysts clearly believe Baozun is more favorable than Stem.

Risk and Volatility

Stem has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stem	-14.04%	N/A	-21.90%
Baozun	-1.93%	-4.60%	-1.89%

Insider & Institutional Ownership

61.6% of Stem shares are owned by institutional investors. Comparatively, 47.3% of Baozun shares are owned by institutional investors. 10.2% of Stem shares are owned by insiders. Comparatively, 59.2% of Baozun shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Baozun beats Stem on 9 of the 14 factors compared between the two stocks.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.

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.