Coupang (NYSE:CPNG – Get Free Report) and Baozun (NASDAQ:BZUN – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
83.7% of Coupang shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 12.8% of Coupang shares are held by insiders. Comparatively, 59.2% of Baozun shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Coupang and Baozun”s gross revenue, earnings per share 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.
Risk and Volatility
Coupang has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Coupang and Baozun, as reported by MarketBeat.com.
| 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 price target of $23.68, suggesting a potential upside of 38.99%. Baozun has a consensus price target of $3.80, suggesting a potential upside of 9.83%. Given Coupang’s stronger consensus rating and higher probable upside, analysts plainly believe Coupang is more favorable than Baozun.
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% |
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.
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