LightInTheBox (NYSE:LITB – Get Free Report) and JD.com (NASDAQ:JD – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Volatility & Risk
LightInTheBox has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, JD.com has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for LightInTheBox and JD.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LightInTheBox | 1 | 0 | 0 | 0 | 1.00 |
| JD.com | 1 | 3 | 9 | 1 | 2.71 |
Institutional and Insider Ownership
56.8% of LightInTheBox shares are held by institutional investors. Comparatively, 16.0% of JD.com shares are held by institutional investors. 62.2% of LightInTheBox shares are held by insiders. Comparatively, 16.6% of JD.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares LightInTheBox and JD.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LightInTheBox | $229.27 million | 0.25 | $8.28 million | $0.50 | 6.30 |
| JD.com | $187.20 billion | 0.22 | $2.81 billion | $1.28 | 25.63 |
JD.com has higher revenue and earnings than LightInTheBox. LightInTheBox is trading at a lower price-to-earnings ratio than JD.com, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares LightInTheBox and JD.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LightInTheBox | 4.07% | -150.84% | 13.92% |
| JD.com | 1.04% | 5.90% | 2.48% |
Summary
JD.com beats LightInTheBox on 10 of the 15 factors compared between the two stocks.
About LightInTheBox
LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.
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.
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