JD.com (NASDAQ: JD) is one of 29 publicly-traded companies in the “E-commerce & Auction Services” industry, but how does it compare to its peers? We will compare JD.com to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Risk & Volatility

JD.com has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, JD.com’s peers have a beta of 1.53, meaning that their average stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

46.4% of JD.com shares are owned by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are owned by institutional investors. 16.6% of JD.com shares are owned by insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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 -0.95% -1.80% -0.44%
JD.com Competitors -1,538.30% -32.31% -7.94%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JD.com 0 2 15 0 2.88
JD.com Competitors 114 733 1557 87 2.65

JD.com presently has a consensus target price of $42.94, indicating a potential downside of 5.14%. As a group, “E-commerce & Auction Services” companies have a potential upside of 4.61%. Given JD.com’s peers higher possible upside, analysts plainly believe JD.com has less favorable growth aspects than its peers.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
JD.com N/A N/A -146.01
JD.com Competitors $2.64 billion $882.67 million -31.98

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

Summary

JD.com peers beat JD.com on 6 of the 11 factors compared.

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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