E Commerce China Dangdang (NYSE: DANG) and JD.com (NASDAQ:JD) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitabiliy, earnings and analyst recommendations.

Earnings & Valuation

This table compares E Commerce China Dangdang and JD.com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
E Commerce China Dangdang N/A N/A N/A ($0.15) -44.20
JD.com N/A N/A N/A ($0.29) -144.86

JD.com is trading at a lower price-to-earnings ratio than E Commerce China Dangdang, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares E Commerce China Dangdang and JD.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E Commerce China Dangdang 8.34% 107.58% 17.19%
JD.com -0.96% -1.46% -0.38%

Risk & Volatility

E Commerce China Dangdang has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500. Comparatively, JD.com has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Insider and Institutional Ownership

25.7% of E Commerce China Dangdang shares are owned by institutional investors. Comparatively, 49.1% 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 will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for E Commerce China Dangdang and JD.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
E Commerce China Dangdang 0 0 0 0 N/A
JD.com 0 6 14 0 2.70

JD.com has a consensus target price of $36.41, indicating a potential downside of 13.33%. Given JD.com’s higher possible upside, analysts plainly believe JD.com is more favorable than E Commerce China Dangdang.

Summary

E Commerce China Dangdang beats JD.com on 5 of the 9 factors compared between the two stocks.

About E Commerce China Dangdang

E-Commerce China Dangdang Inc. is a business to consumer e-commerce company. The Company is focused on selling books online. The Company operates and manages its business in the segment of the provision of a single class of global services for the delivery of content and applications over the Internet. It offers over 1,200,000 book titles, including approximately 1,100,000 Chinese language titles. It offers other media products and general merchandise categories on its Internet platform, including fashion and apparel beauty and personal care products, home and lifestyle products, and baby, children and maternity products. It also offers the dangdang.com marketplace program, which allows third-party merchants to sell their general merchandise products alongside its products. Its Internet platform consists of its dangdang.com Website and its Dangdang mobile shopping application. Its Dangdang Reader application allows customers to browse for, download, purchase and read e-books.

About JD.com

JD.com, Inc. is an online direct sales company. The Company engages in the sale of electronics and home appliance products and general merchandise products (including audio, video products and books) sourced from manufacturers, distributors and publishers in China on the Internet through its Website, www.jd.com. It also offers an online marketplace that enables third-party sellers to sell their products to customers on the Company’s Website. The Company operates through the provision of a single class of services for accelerating and improving the delivery of its products over the Internet. The Company also offers online and in-person payment options and customer services. The Company operates approximately 210 warehouses with an aggregate gross floor area of approximately four million square meters in over 50 cities. It operates over 5,370 delivery stations and pickup stations in approximately 2,350 counties and districts across China.

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