JD.com (JD) vs. Its Rivals Head-To-Head Analysis

JD.com (NASDAQ:JD) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it weigh in compared to its peers? We will compare JD.com to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for JD.com and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	1	5	8	0	2.50
JD.com Competitors	1404	5406	10878	309	2.56

JD.com currently has a consensus price target of $35.33, suggesting a potential upside of 37.59%. As a group, “Broadline Retail” companies have a potential upside of 20.78%. Given JD.com’s higher probable upside, research analysts clearly believe JD.com is more favorable than its peers.

Profitability

This table compares JD.com and its peers’ 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%
JD.com Competitors	-3.00%	-38.43%	-2.57%

Insider and Institutional Ownership

16.0% of JD.com shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are owned by institutional investors. 16.6% of JD.com shares are owned by insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

JD.com pays an annual dividend of $0.98 per share and has a dividend yield of 3.8%. JD.com pays out 68.1% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 31.3% and pay out 11.5% of their earnings in the form of a dividend. JD.com lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares JD.com and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JD.com	$187.20 billion	$2.81 billion	17.83
JD.com Competitors	$22.26 billion	$1.71 billion	14.97

JD.com has higher revenue and earnings than its peers. JD.com is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

JD.com has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, JD.com’s peers have a beta of 1.70, meaning that their average share price is 70% more volatile than the S&P 500.

Summary

JD.com peers beat JD.com on 8 of the 15 factors compared.

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.