Contrasting JD.com (JD) and Its Competitors

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

Volatility & Risk

JD.com has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, JD.com’s peers have a beta of 1.74, suggesting that their average share price is 74% more volatile than the S&P 500.

Insider and Institutional Ownership

16.0% of JD.com shares are held by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are held by institutional investors. 16.6% of JD.com shares are held by insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares JD.com and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JD.com	$187.20 billion	$2.81 billion	19.89
JD.com Competitors	$24.86 billion	$1.71 billion	15.23

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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for JD.com and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	1	5	8	0	2.50
JD.com Competitors	1406	5409	10895	311	2.56

JD.com currently has a consensus target price of $35.33, suggesting a potential upside of 23.37%. As a group, “Broadline Retail” companies have a potential upside of 20.60%. Given JD.com’s higher possible upside, equities research analysts plainly 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	-2.87%	-29.30%	-2.12%

Dividends

JD.com pays an annual dividend of $0.98 per share and has a dividend yield of 3.4%. 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 18.1% and pay out 72.9% of their earnings in the form of a dividend.

Summary

JD.com beats its peers on 8 of the 15 factors compared.

JD.com Company Profile

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.