Head-To-Head Review: Prosus (OTCMKTS:PROSY) & Baozun (NASDAQ:BZUN)

Baozun (NASDAQ:BZUN) and Prosus (OTCMKTS:PROSY) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

47.3% of Baozun shares are owned by institutional investors. Comparatively, 0.0% of Prosus shares are owned by institutional investors. 59.2% of Baozun shares are owned by insiders. Comparatively, 0.5% of Prosus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baozun	-1.26%	2.55%	1.43%
Prosus	N/A	N/A	N/A

Risk & Volatility

Baozun has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Prosus has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Baozun and Prosus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baozun	1	1	2	0	2.25
Prosus	0	2	5	0	2.71

Baozun currently has a consensus price target of $3.80, indicating a potential upside of 25.83%. Prosus has a consensus price target of $11.10, indicating a potential upside of 24.30%. Given Baozun’s higher probable upside, analysts plainly believe Baozun is more favorable than Prosus.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baozun	$1.42 billion	0.12	-$34.62 million	($0.33)	-9.15
Prosus	$9.71 billion	23.05	$11.64 billion	N/A	N/A

Prosus has higher revenue and earnings than Baozun.

Summary

Prosus 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 Prosus

Prosus N.V. engages in the e-commerce and internet businesses in Asia, Europe, Latin America, North America, and internationally. It operates internet platforms, such as classifieds, payments and fintech, food delivery, education technology, etail, ventures, social, and other internet platforms. The company was formerly known as Myriad International Holdings N.V. and changed its name to Prosus N.V. in August 2019. Prosus N.V. was incorporated in 1994 and is headquartered in Amsterdam, the Netherlands. Prosus N.V. operates as a subsidiary of Naspers Limited.