Reviewing Unisys (NYSE:UIS) & Baozun (NASDAQ:BZUN)

Baozun (NASDAQ:BZUN) and Unisys (NYSE:UIS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

47.3% of Baozun shares are owned by institutional investors. Comparatively, 86.9% of Unisys shares are owned by institutional investors. 59.2% of Baozun shares are owned by insiders. Comparatively, 2.7% of Unisys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baozun	$1.29 billion	0.12	-$18.68 million	($0.43)	-6.44
Unisys	$2.01 billion	0.14	-$193.40 million	($1.18)	-3.36

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baozun	-1.93%	-4.46%	-1.84%
Unisys	-4.16%	-12.55%	1.56%

Risk and Volatility

Baozun has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Unisys has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Baozun and Unisys, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baozun	0	1	1	0	2.50
Unisys	0	1	1	0	2.50

Baozun presently has a consensus price target of $3.20, suggesting a potential upside of 15.52%. Unisys has a consensus price target of $7.75, suggesting a potential upside of 95.71%. Given Unisys’ higher possible upside, analysts plainly believe Unisys is more favorable than Baozun.

Summary

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

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.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.