Financial Analysis: JD.com (NASDAQ:JD) versus Montague International (OTCMKTS:MIHL)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Montague International and JD.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montague International	0	0	0	0	0.00
JD.com	2	5	10	1	2.56

JD.com has a consensus price target of $38.67, suggesting a potential upside of 33.20%. Given JD.com’s stronger consensus rating and higher probable upside, analysts plainly believe JD.com is more favorable than Montague International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montague International	N/A	N/A	N/A
JD.com	2.46%	10.99%	4.80%

Institutional and Insider Ownership

16.0% of JD.com shares are owned by institutional investors. 16.6% of JD.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Montague International and JD.com”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montague International	N/A	N/A	N/A	N/A	N/A
JD.com	$158.76 billion	0.26	$5.67 billion	$2.94	9.87

JD.com has higher revenue and earnings than Montague International.

Volatility and Risk

Montague International has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, JD.com has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Summary

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

About Montague International

Montague International Holding Ltd., through its subsidiaries, engages in the businesses of financial services, energy, mining, entertainment, healthcare, consumer, industrial trade, and business development in the European Union, the Russian Federation, Latin America, and the United States. It offers investment advisory services and other investment solutions to corporate clients and high net worth individuals. The company also provides securities brokerage/dealership services; owns and operates a gold mining project; and designs, manufactures, and installs modular oil refining plants. In addition, it engages in real estate development business, as well as owns and operates entertainment centers, such as clubs. Montague International Holding Ltd. was formerly known as High Tech Crime Solutions Inc. and changed its name to Montague International Holding Ltd. in July 2012. The company was incorporated in 2009 and is based in Philadelphia, Pennsylvania. Montague International Holding Ltd. is a former subsidiary of LIGATT Security International, Inc.

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.