Wipro (NYSE:WIT) & Baozun (NASDAQ:BZUN) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Wipro and Baozun, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	1	2	0	0	1.67
Baozun	1	1	0	0	1.50

Volatility and Risk

Wipro has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wipro	14.61%	15.35%	10.00%
Baozun	-2.43%	0.50%	0.24%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$908.92 billion	0.02	$1.54 billion	$0.14	15.46
Baozun	$1.42 billion	0.12	-$34.62 million	($0.58)	-5.16

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

Insider and Institutional Ownership

2.4% of Wipro shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 1.0% of Wipro shares are held by insiders. Comparatively, 59.2% of Baozun shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Wipro beats Baozun on 9 of the 12 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

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.