Comparing Linkage Global (NASDAQ:LGCB) & Baozun (NASDAQ:BZUN)

Linkage Global (NASDAQ:LGCB) and Baozun (NASDAQ:BZUN) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Insider and Institutional Ownership

0.3% of Linkage Global shares are owned by institutional investors. Comparatively, 47.3% of Baozun shares are owned by institutional investors. 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.

Analyst Ratings

This is a summary of current ratings for Linkage Global and Baozun, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Linkage Global	0	0	0	0	0.00
Baozun	0	1	1	0	2.50

Baozun has a consensus price target of $3.20, indicating a potential downside of 2.44%. Given Baozun’s stronger consensus rating and higher probable upside, analysts plainly believe Baozun is more favorable than Linkage Global.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Linkage Global	$10.29 million	0.41	-$440,000.00	N/A	N/A
Baozun	$9.42 billion	0.02	-$39.22 million	($0.43)	-7.63

Linkage Global has higher earnings, but lower revenue than Baozun.

Risk and Volatility

Linkage Global has a beta of -1.74, meaning that its share price is 274% less volatile than the S&P 500. Comparatively, Baozun has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Linkage Global	N/A	N/A	N/A
Baozun	-2.55%	-5.58%	-2.33%

Summary

Baozun beats Linkage Global on 7 of the 12 factors compared between the two stocks.

About Linkage Global

Linkage Global Inc, through its subsidiaries, operates as a cross-border e-commerce integrated services provider in Japan, Hong Kong, and Mainland China. It provides cross-border product sales; digital marketing services; and e-commerce operation training and software support services. Linkage Global Inc was founded in 2011 and is headquartered in Tokyo, Japan.

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.