Gartner (NYSE: IT) and Baozun (NASDAQ:BZUN) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Gartner 1.50% 103.10% 6.92%
Baozun 3.26% 9.19% 6.33%

Volatility and Risk

Gartner has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Baozun has a beta of 4.74, suggesting that its stock price is 374% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gartner and Baozun, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gartner 0 4 4 1 2.67
Baozun 0 1 2 0 2.67

Gartner presently has a consensus target price of $126.25, suggesting a potential upside of 1.50%. Baozun has a consensus target price of $35.33, suggesting a potential upside of 13.03%. Given Baozun’s higher probable upside, analysts plainly believe Baozun is more favorable than Gartner.

Earnings & Valuation

This table compares Gartner and Baozun’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gartner $2.75 billion 4.10 $373.34 million $0.55 226.15
Baozun $568.80 million 2.98 $23.43 million $0.32 97.69

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

Insider & Institutional Ownership

92.1% of Gartner shares are owned by institutional investors. Comparatively, 34.1% of Baozun shares are owned by institutional investors. 4.3% of Gartner 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.

Summary

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

About Gartner

Gartner, Inc. is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events. Research segment consists of subscription-based research products, access to research inquiry, peer networking services and membership programs. Consulting segment consists of consulting, measurement engagements and strategic advisory services. Events segment consists of various symposia, conferences and exhibitions. It provides insight through reports, briefings, tools, access to its analysts, peer networking services and membership programs that enable its clients to make decisions about their IT, supply chain and digital marketing initiatives. Its consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.

About Baozun

Baozun Inc. is a brand e-commerce solutions company. The Company is engaged in providing end-to-end e-commerce solutions, including the sales of apparel, home and electronic products, online store design and setup, visual merchandising and marketing, online store operations, customer services, warehousing and order fulfillment. Its segments include the brand e-commerce segment, which provides brand-e-commerce solutions to its brand partners, including IT services, store operations, digital marketing, customer services, warehousing and fulfillment, and the Maikefeng segment that operates its retail online platform, Maikefeng. Its subsidiaries include Baozun Hong Kong Holding Limited and Baozun Hongkong Investment Limited.

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