Critical Comparison: Jumei International (JMEI) and E Commerce China Dangdang (DANG)

Jumei International (NYSE: JMEI) and E Commerce China Dangdang (NYSE:DANG) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Jumei International and E Commerce China Dangdang, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jumei International 0 0 0 0 N/A
E Commerce China Dangdang 0 0 0 0 N/A

Risk and Volatility

Jumei International has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, E Commerce China Dangdang has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500.

Valuation and Earnings

This table compares Jumei International and E Commerce China Dangdang’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jumei International $904.10 million 0.46 $20.48 million $0.11 25.55
E Commerce China Dangdang N/A N/A N/A ($0.05) -132.60

Jumei International has higher revenue and earnings than E Commerce China Dangdang. E Commerce China Dangdang is trading at a lower price-to-earnings ratio than Jumei International, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Jumei International N/A N/A N/A
E Commerce China Dangdang 8.34% 107.58% 17.19%

Institutional & Insider Ownership

25.4% of Jumei International shares are owned by institutional investors. Comparatively, 25.7% of E Commerce China Dangdang shares are owned by institutional investors. 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.

Summary

E Commerce China Dangdang beats Jumei International on 5 of the 8 factors compared between the two stocks.

Jumei International Company Profile

Jumei International Holding Limited is an online retailer of beauty products. The Company’s sales formats consist of curated sales, online shopping mall and flash sales. The Company’s Jumei Global sales channel is part of its curated sales format. The Company’s curated sales format includes branded beauty products, baby, children and maternity products, light luxury products and health supplements. Its online shopping mall format includes branded beauty products. Its flash sales format includes branded apparel and other lifestyle products. Its Jumei Global offers Chinese consumers convenient access to products sourced directly from overseas and allows its consumers to make payments in Renminbi. Jumei Global offers branded beauty products, baby, children and maternity products, light luxury products and health supplements from South Korea, Japan, Taiwan, the United States and European countries. It also offers exclusive products, including products under its private label brands.

E Commerce China Dangdang Company Profile

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.

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