Critical Analysis: Evolv Technologies (NASDAQ:EVLV) vs. Baozun (NASDAQ:BZUN)

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

Earnings & Valuation

This table compares Evolv Technologies and Baozun”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolv Technologies	$103.86 million	11.26	-$54.02 million	($0.37)	-18.11
Baozun	$1.29 billion	0.13	-$18.68 million	($0.49)	-5.73

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

Volatility & Risk

Evolv Technologies has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Baozun has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Evolv Technologies and Baozun, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolv Technologies	1	1	4	1	2.71
Baozun	1	0	0	0	1.00

Evolv Technologies presently has a consensus target price of $9.13, suggesting a potential upside of 36.19%. Given Evolv Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Evolv Technologies is more favorable than Baozun.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evolv Technologies	-43.76%	-55.11%	-21.55%
Baozun	-2.10%	-3.28%	-1.47%

Institutional & Insider Ownership

66.7% of Evolv Technologies shares are owned by institutional investors. Comparatively, 47.3% of Baozun shares are owned by institutional investors. 11.3% of Evolv Technologies shares are owned by insiders. Comparatively, 59.2% of Baozun shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Evolv Technologies beats Baozun on 8 of the 15 factors compared between the two stocks.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.

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.