Fair Isaac (NYSE:FICO – Get Free Report) and Baozun (NASDAQ:BZUN – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk and Volatility
Fair Isaac has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Valuation & Earnings
This table compares Fair Isaac and Baozun”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fair Isaac | $2.26 billion | 11.73 | $651.95 million | $31.57 | 36.14 |
| Baozun | $10.26 billion | 0.01 | -$34.62 million | ($0.45) | -5.89 |
Fair Isaac has higher earnings, but lower revenue than Baozun. Baozun is trading at a lower price-to-earnings ratio than Fair Isaac, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Fair Isaac and Baozun’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fair Isaac | 33.67% | -41.04% | 37.92% |
| Baozun | -1.80% | 1.68% | 0.88% |
Insider & Institutional Ownership
85.8% of Fair Isaac shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 3.0% of Fair Isaac shares are held by company insiders. Comparatively, 59.2% of Baozun shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Fair Isaac and Baozun, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fair Isaac | 0 | 5 | 10 | 0 | 2.67 |
| Baozun | 1 | 1 | 0 | 0 | 1.50 |
Fair Isaac presently has a consensus price target of $1,619.36, indicating a potential upside of 41.94%. Given Fair Isaac’s stronger consensus rating and higher probable upside, research analysts clearly believe Fair Isaac is more favorable than Baozun.
Summary
Fair Isaac beats Baozun on 11 of the 14 factors compared between the two stocks.
About Fair Isaac
Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.
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.
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