Critical Contrast: Taboola.com (NASDAQ:TBLA) & Baozun (NASDAQ:BZUN)

Baozun (NASDAQ:BZUNGet Free Report) and Taboola.com (NASDAQ:TBLAGet Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Baozun -2.10% -3.28% -1.47%
Taboola.com 1.34% 8.12% 4.92%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baozun 1 0 0 0 1.00
Taboola.com 0 4 5 0 2.56

Taboola.com has a consensus price target of $4.80, suggesting a potential upside of 14.83%. Given Taboola.com’s stronger consensus rating and higher probable upside, analysts plainly believe Taboola.com is more favorable than Baozun.

Earnings & Valuation

This table compares Baozun and Taboola.com”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baozun $1.29 billion 0.13 -$18.68 million ($0.49) -5.69
Taboola.com $1.77 billion 0.68 -$3.76 million $0.08 52.25

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

Insider and Institutional Ownership

47.3% of Baozun shares are owned by institutional investors. Comparatively, 42.9% of Taboola.com shares are owned by institutional investors. 59.2% of Baozun shares are owned by insiders. Comparatively, 24.7% of Taboola.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Baozun has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Summary

Taboola.com beats Baozun on 12 of the 14 factors compared between the two stocks.

About Baozun

(Get Free Report)

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 Taboola.com

(Get Free Report)

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

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