Comparing JD.com (NASDAQ:JD) and Zalando (OTCMKTS:ZLDSF)

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

Insider & Institutional Ownership

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

Valuation & Earnings

This table compares JD.com and Zalando”s 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	0.22	$2.81 billion	$1.28	25.71
Zalando	N/A	N/A	N/A	$0.05	658.42

JD.com has higher revenue and earnings than Zalando. JD.com is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JD.com	1.04%	5.90%	2.48%
Zalando	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for JD.com and Zalando, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	1	3	9	1	2.71
Zalando	0	0	0	0	0.00

JD.com presently has a consensus price target of $36.42, suggesting a potential upside of 10.67%. Given JD.com’s stronger consensus rating and higher probable upside, equities analysts clearly believe JD.com is more favorable than Zalando.

Summary

JD.com beats Zalando on 11 of the 12 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 Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.