Critical Review: JD.com (NASDAQ:JD) and Global-e Online (NASDAQ:GLBE)

Global-e Online (NASDAQ:GLBE) and JD.com (NASDAQ:JD) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Volatility and Risk

Global-e Online has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, JD.com has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Global-e Online and JD.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global-e Online	0.82%	0.81%	0.59%
JD.com	2.46%	10.99%	4.80%

Institutional and Insider Ownership

94.6% of Global-e Online shares are owned by institutional investors. Comparatively, 16.0% of JD.com shares are owned by institutional investors. 11.6% of Global-e Online shares are owned by company insiders. Comparatively, 16.6% of JD.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Global-e Online and JD.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global-e Online	2	0	10	1	2.77
JD.com	2	3	11	1	2.65

Global-e Online presently has a consensus target price of $50.09, indicating a potential upside of 37.05%. JD.com has a consensus target price of $38.71, indicating a potential upside of 35.93%. Given Global-e Online’s stronger consensus rating and higher possible upside, research analysts clearly believe Global-e Online is more favorable than JD.com.

Valuation and Earnings

This table compares Global-e Online and JD.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global-e Online	$752.76 million	8.24	-$75.55 million	$0.03	1,218.33
JD.com	$158.76 billion	0.26	$5.67 billion	$2.94	9.69

JD.com has higher revenue and earnings than Global-e Online. JD.com is trading at a lower price-to-earnings ratio than Global-e Online, indicating that it is currently the more affordable of the two stocks.

Summary

JD.com beats Global-e Online on 8 of the 14 factors compared between the two stocks.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

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.