Contrasting Coupang (NYSE:CPNG) & Baozun (NASDAQ:BZUN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coupang	-3.77%	-20.09%	-4.41%
Baozun	-1.26%	2.55%	1.43%

Volatility & Risk

Coupang has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Coupang and Baozun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	2	2	6	0	2.40
Baozun	1	1	2	0	2.25

Coupang presently has a consensus target price of $23.68, suggesting a potential upside of 38.99%. Baozun has a consensus target price of $3.80, suggesting a potential upside of 9.83%. Given Coupang’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Coupang is more favorable than Baozun.

Insider & Institutional Ownership

83.7% of Coupang shares are owned by institutional investors. Comparatively, 47.3% of Baozun shares are owned by institutional investors. 12.8% of Coupang shares are owned by company insiders. Comparatively, 59.2% of Baozun shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$34.53 billion	0.89	$208.00 million	($0.43)	-39.63
Baozun	$10.45 billion	0.02	-$34.62 million	($0.33)	-10.48

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

Summary

Coupang beats Baozun on 8 of the 14 factors compared between the two stocks.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.

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.