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

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

Volatility and Risk

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

Insider & Institutional Ownership

47.3% of Baozun shares are owned by institutional investors. Comparatively, 0.3% of Linkage Global shares are owned by institutional investors. 59.2% of Baozun shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Baozun and Linkage Global, as reported by MarketBeat.

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

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

Earnings and Valuation

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

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

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

Profitability

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

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

Summary

Baozun beats Linkage Global 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 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.