JD.com (JD) vs. Its Peers Critical Analysis

JD.com (NASDAQ: JD) is one of 29 public companies in the “E-commerce & Auction Services” industry, but how does it contrast to its rivals? We will compare JD.com to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

JD.com has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, JD.com’s rivals have a beta of 1.53, indicating that their average share price is 53% more volatile than the S&P 500.

Profitability

This table compares JD.com and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JD.com -0.95% -1.80% -0.44%
JD.com Competitors -1,537.85% -30.98% -7.15%

Insider and Institutional Ownership

46.4% of JD.com shares are held by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are held by institutional investors. 16.6% of JD.com shares are held by insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares JD.com and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
JD.com N/A N/A -126.54
JD.com Competitors $2.66 billion $891.38 million -28.26

JD.com’s rivals have higher revenue and earnings than JD.com. JD.com is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations for JD.com and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JD.com 0 2 16 0 2.89
JD.com Competitors 86 677 1567 83 2.68

JD.com currently has a consensus price target of $43.35, suggesting a potential upside of 10.51%. As a group, “E-commerce & Auction Services” companies have a potential upside of 12.62%. Given JD.com’s rivals higher possible upside, analysts clearly believe JD.com has less favorable growth aspects than its rivals.

Summary

JD.com rivals beat JD.com on 6 of the 11 factors compared.

JD.com Company Profile

JD.com, Inc. is an online direct sales company. The Company engages in the sale of electronics and home appliance products and general merchandise products (including audio, video products and books) sourced from manufacturers, distributors and publishers in China on the Internet through its Website, www.jd.com. It also offers an online marketplace that enables third-party sellers to sell their products to customers on the Company’s Website. The Company operates through the provision of a single class of services for accelerating and improving the delivery of its products over the Internet. The Company also offers online and in-person payment options and customer services. The Company operates approximately 210 warehouses with an aggregate gross floor area of approximately four million square meters in over 50 cities. It operates over 5,370 delivery stations and pickup stations in approximately 2,350 counties and districts across China.

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