Comparing Taboola.com (NASDAQ:TBLA) & Baozun (NASDAQ:BZUN)

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

Volatility and Risk

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

Insider and Institutional Ownership

42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 47.3% of Baozun shares are owned by institutional investors. 22.4% of Taboola.com shares are owned by company insiders. Comparatively, 59.2% of Baozun shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.77 billion	0.68	-$3.76 million	$0.08	51.94
Baozun	$1.29 billion	0.13	-$18.68 million	($0.49)	-5.71

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.

Profitability

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

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

Analyst Recommendations

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

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

Taboola.com currently has a consensus target price of $4.80, suggesting a potential upside of 15.52%. Given Taboola.com’s stronger consensus rating and higher probable upside, research analysts clearly believe Taboola.com is more favorable than Baozun.

Summary

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

About Taboola.com

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.

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.