Analyzing Baozun (NASDAQ:BZUN) and iPower (NASDAQ:IPW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iPower	-23.43%	-26.96%	-14.85%
Baozun	-1.26%	2.55%	1.43%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iPower	1	0	0	0	1.00
Baozun	1	1	2	0	2.25

Baozun has a consensus price target of $3.80, indicating a potential upside of 38.18%. Given Baozun’s stronger consensus rating and higher possible upside, analysts clearly believe Baozun is more favorable than iPower.

Institutional & Insider Ownership

2.7% of iPower shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 26.0% of iPower shares are held by company insiders. Comparatively, 59.2% of Baozun shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

iPower has a beta of 2.92, suggesting that its share price is 192% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iPower	$66.14 million	0.02	-$4.97 million	($480.49)	-0.00
Baozun	$1.42 billion	0.11	-$34.62 million	($0.33)	-8.33

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

Summary

Baozun beats iPower on 11 of the 14 factors compared between the two stocks.

About iPower

iPower Inc. operates as an online retailer and supplier of consumer home, garden, and pet products for commercial businesses and individuals in the United States. The company offers grow light systems; advanced heating, ventilation, and air conditioning systems; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media products. It also provides general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. The company sells its products under the iPower and Simple Deluxe brand names through zenhydro.com, simpledeluxe.com, and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Rancho Cucamonga, California.

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.