Comparing NextMart (OTCMKTS:NXMR) and JD.com (NASDAQ:JD)

NextMart (OTCMKTS:NXMR) and JD.com (NASDAQ:JD) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Volatility & Risk

NextMart has a beta of -0.69, meaning that its stock price is 169% less volatile than the S&P 500. Comparatively, JD.com has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Profitability

This table compares NextMart and JD.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextMart	N/A	N/A	N/A
JD.com	3.06%	13.60%	6.06%

Insider and Institutional Ownership

16.0% of JD.com shares are held by institutional investors. 56.4% of NextMart shares are held by company insiders. Comparatively, 16.6% of JD.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NextMart and JD.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextMart	0	0	0	0	0.00
JD.com	0	5	9	2	2.81

JD.com has a consensus price target of $41.92, suggesting a potential upside of 31.03%. Given JD.com’s stronger consensus rating and higher probable upside, analysts plainly believe JD.com is more favorable than NextMart.

Earnings and Valuation

This table compares NextMart and JD.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextMart	N/A	N/A	N/A	N/A	N/A
JD.com	$1,265.12 billion	0.04	$5.67 billion	$3.56	8.99

JD.com has higher revenue and earnings than NextMart.

Summary

JD.com beats NextMart on 10 of the 11 factors compared between the two stocks.

About NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.

About JD.com

JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.