ALi vs Baozun Which Offers More Value?

ALi and Baozun are two leading Chinese companies in the e-commerce sector, with ALi owning the popular online marketplace AliExpress and Baozun providing e-commerce solutions for brands looking to expand their online presence in China. Both companies have experienced significant growth in recent years, attracting the attention of investors seeking exposure to the booming Chinese e-commerce market. The stocks of ALi and Baozun have shown strong performance but differ in their business models and growth prospects, making them both interesting options for investors looking to capitalize on the e-commerce trend in China.

ALi or Baozun?

When comparing ALi and Baozun, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ALi and Baozun.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ALi has a dividend yield of -%, while Baozun has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ALi reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Baozun reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ALi P/E ratio at -3.72 and Baozun's P/E ratio at -3.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ALi P/B ratio is 3.71 while Baozun's P/B ratio is 0.27.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ALi has seen a 5-year revenue growth of -0.42%, while Baozun's is 0.64%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALi's ROE at -82.56% and Baozun's ROE at -6.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$27.75 for ALi and $2.46 for Baozun. Over the past year, ALi's prices ranged from NT$26.40 to NT$59.08, with a yearly change of 123.80%. Baozun's prices fluctuated between $1.90 and $4.38, with a yearly change of 130.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.