PetMed Express (NASDAQ:PETS – Get Free Report) and JD.com (NASDAQ:JD – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares PetMed Express and JD.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PetMed Express | 0.14% | 0.37% | 0.23% |
| JD.com | 3.06% | 13.60% | 6.06% |
Institutional and Insider Ownership
73.3% of PetMed Express shares are owned by institutional investors. Comparatively, 16.0% of JD.com shares are owned by institutional investors. 1.1% of PetMed Express shares are owned by insiders. Comparatively, 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 company will outperform the market over the long term.
Volatility and Risk
Valuation & Earnings
This table compares PetMed Express and JD.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PetMed Express | $281.06 million | 0.19 | -$7.46 million | $0.01 | 265.00 |
| JD.com | $158.76 billion | 0.31 | $5.67 billion | $3.56 | 9.88 |
JD.com has higher revenue and earnings than PetMed Express. JD.com is trading at a lower price-to-earnings ratio than PetMed Express, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for PetMed Express and JD.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PetMed Express | 1 | 0 | 0 | 0 | 1.00 |
| JD.com | 1 | 5 | 9 | 1 | 2.63 |
PetMed Express presently has a consensus target price of $3.20, suggesting a potential upside of 20.75%. JD.com has a consensus target price of $43.31, suggesting a potential upside of 23.14%. Given JD.com’s stronger consensus rating and higher probable upside, analysts clearly believe JD.com is more favorable than PetMed Express.
Summary
JD.com beats PetMed Express on 12 of the 15 factors compared between the two stocks.
About PetMed Express
PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.
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.
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