Financial Analysis: ZTO Express (Cayman) (NYSE:ZTO) vs. JD Logistics (OTCMKTS:JDLGF)

JD Logistics (OTCMKTS:JDLGF) and ZTO Express (Cayman) (NYSE:ZTO) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for JD Logistics and ZTO Express (Cayman), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD Logistics	0	0	0	0	0.00
ZTO Express (Cayman)	0	2	2	1	2.80

ZTO Express (Cayman) has a consensus target price of $29.55, suggesting a potential upside of 38.12%. Given ZTO Express (Cayman)’s stronger consensus rating and higher probable upside, analysts clearly believe ZTO Express (Cayman) is more favorable than JD Logistics.

Institutional and Insider Ownership

41.6% of ZTO Express (Cayman) shares are held by institutional investors. 41.3% of ZTO Express (Cayman) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares JD Logistics and ZTO Express (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JD Logistics	N/A	N/A	N/A
ZTO Express (Cayman)	19.03%	15.90%	10.89%

Earnings and Valuation

This table compares JD Logistics and ZTO Express (Cayman)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD Logistics	N/A	N/A	N/A	N/A	N/A
ZTO Express (Cayman)	$7.02 billion	1.70	$1.30 billion	$1.86	11.50

ZTO Express (Cayman) has higher revenue and earnings than JD Logistics.

Summary

ZTO Express (Cayman) beats JD Logistics on 10 of the 10 factors compared between the two stocks.

About JD Logistics

JD Logistics, Inc., an investment holding company, provides integrated supply chain solutions and logistics services in the People’s Republic of China. The company offers warehousing and distribution, express and freight delivery; courier; air cargo; line-haul transportation and last-mile delivery; bulky item, cold chain, and cross-border logistics; freight forwarder; and domestic and international transportation and delivery services, as well as technology and consulting services. It also provides value-added services, such as installment, after-sales and maintenance, logistics technology, and advertising services. The company serves fast-moving consumer goods, home appliances and home furniture, apparel, 3C, automotive, and fresh produce industries. JD Logistics, Inc. was incorporated in 2012 and is headquartered in Beijing, the People’s Republic of China. JD Logistics, Inc. operates as a subsidiary of Jingdong Technology Group Corporation.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.