Mercari (OTCMKTS:MCARY) & JD.com (NASDAQ:JD) Critical Survey

JD.com (NASDAQ:JD) and Mercari (OTCMKTS:MCARY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

16.0% of JD.com shares are held by institutional investors. 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 Ratings

This is a breakdown of current recommendations and price targets for JD.com and Mercari, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	1	4	9	0	2.57
Mercari	0	0	0	0	0.00

JD.com currently has a consensus price target of $35.83, indicating a potential upside of 24.68%. Given JD.com’s stronger consensus rating and higher possible upside, analysts clearly believe JD.com is more favorable than Mercari.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JD.com	1.13%	6.78%	2.79%
Mercari	N/A	N/A	N/A

Valuation & Earnings

This table compares JD.com and Mercari”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD.com	$187.20 billion	0.19	$2.81 billion	$1.44	19.96
Mercari	N/A	N/A	N/A	N/A	N/A

JD.com has higher revenue and earnings than Mercari.

Summary

JD.com beats Mercari on 9 of the 9 factors compared between the two stocks.

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.

About Mercari

Mercari, Inc. plans, develops, and operates Mercari marketplace applications in Japan and the United States. The company was incorporated in 2013 and is based in Tokyo, Japan.