The shares of Baozun Inc. (NASDAQ:BZUN) and Dana Incorporated (NYSE:DAN) were among the active stocks of the last trading sessions. Baozun Inc. (NASDAQ:BZUN) declined to -0.83% closing at the price of $39.2 whereas the shares of Dana Incorporated (NYSE:DAN) declined -4.57% with the decrease of -0.83 points closing at the price of $17.35. Baozun Inc. has currently decrease -18.33% in its stock over the period of 6-months while its rival Dana Incorporated subtracted -33.42% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Baozun Inc. (NASDAQ:BZUN) is 9.7% while the ROI of Dana Incorporated (NYSE:DAN) is 13.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, BZUN’s EBITDA Margin is 42.86 whereas DAN’s is 5.18.
Both the profitability ratios suggest a mixed sentiment for Baozun Inc. (NASDAQ:BZUN) and Dana Incorporated (NYSE:DAN).
EPS & Surprise Factor
Baozun Inc. (NASDAQ:BZUN) reported $0.14/share EPS for the previous quarter where analysts were predicting an EPS to be $0.13/share Thus beating the analyst Estimates with a Surprise Factor of 7.7 Percent. While, Dana Incorporated (NYSE:DAN) reported EPS of $0.74/share in the last quarter. The analysts projected EPS of $0.78/share depicting a Surprise of -5.1 Percent.
Taking a look at Earnings per Share, Baozun Inc. tends to be beating the analyst estimates more than Dana Incorporated. so BZUN is more profitable than DAN.
Technical Analysis of Baozun Inc. & Dana Incorporated
Moving average convergence divergence (MACD) shows that Baozun Inc. (NASDAQ:BZUN) is on a PRICE RELATIVITY trend While Dana Incorporated (NYSE:DAN) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Baozun Inc. was in BEARISH territory and Dana Incorporated was in BEARISH territory.
BZUN’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While DAN’s candle is BEARISH with HIGH.
EPS Growth Rate: BZUN’s 7.93% versus DAN’s 7.1%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Baozun Inc. (NASDAQ:BZUN) is predicted at 7.93% while Dana Incorporated (NYSE:DAN) stands at 7.1%. These numbers suggest that BZUN is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of BZUN stands at 2.1 while DAN is at 1.6 whereas the debt ratio of the prior is 0.27 while the debt ratio of the later is 1.58.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2 for BZUN and 2.6 for DAN which means BZUN has Buy rating whereas DAN has Hold rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for BZUN is $60.08 which is 34.75% of its current price while DAN has price target of 24.75 which is 29.9% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
BZUN currently has price to earning P/E ratio of 71.79 whereas DAN has 6.72 while the forward P/E ratio for the prior stands at 22.62 and for the later it depicts the value of 5.43.
The price to Book P/B for BZUN is 8.02, Price to Sale is at 3.47 and for DAN these ratios stand at 2.2 and 0.33.