Head-To-Head Survey: Datasea (NASDAQ:DTSS) & Baozun (NASDAQ:BZUN)

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

Risk and Volatility

Baozun has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares Baozun and Datasea”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baozun	$1.29 billion	0.13	-$18.68 million	($0.49)	-5.87
Datasea	$64.35 million	0.11	-$5.09 million	($0.42)	-1.95

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

Analyst Ratings

This is a summary of current ratings and target prices for Baozun and Datasea, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baozun	1	0	0	0	1.00
Datasea	1	0	0	0	1.00

Institutional & Insider Ownership

47.3% of Baozun shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 59.2% of Baozun shares are owned by company insiders. Comparatively, 50.7% of Datasea shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Baozun and Datasea’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%
Datasea	-5.17%	-110.68%	-50.20%

Summary

Baozun beats Datasea on 6 of the 11 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.