Comparing Endava (NYSE:DAVA) & Baozun (NASDAQ:BZUN)

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

Volatility and Risk

Endava has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$932.88 million	0.94	$21.56 million	$0.38	38.91
Baozun	$1.29 billion	0.12	-$18.68 million	($0.43)	-6.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endava	2.33%	3.59%	2.35%
Baozun	-1.93%	-4.46%	-1.84%

Insider & Institutional Ownership

62.2% of Endava shares are owned by institutional investors. Comparatively, 47.3% of Baozun shares are owned by institutional investors. 18.8% of Endava shares are owned by company insiders. Comparatively, 59.2% of Baozun shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	0	6	3	0	2.33
Baozun	0	1	1	0	2.50

Endava presently has a consensus target price of $26.63, suggesting a potential upside of 80.06%. Baozun has a consensus target price of $3.20, suggesting a potential upside of 22.14%. Given Endava’s higher probable upside, equities analysts clearly believe Endava is more favorable than Baozun.

Summary

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

About Endava

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

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.