JD.com (NASDAQ:JD – Get Free Report) and Booking (NASDAQ:BKNG – Get Free Report) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Profitability
This table compares JD.com and Booking’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JD.com | 3.06% | 13.60% | 6.06% |
| Booking | 19.23% | -134.19% | 24.16% |
Analyst Ratings
This is a summary of current recommendations for JD.com and Booking, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JD.com | 0 | 5 | 10 | 2 | 2.82 |
| Booking | 0 | 11 | 19 | 3 | 2.76 |
Earnings and Valuation
This table compares JD.com and Booking”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JD.com | $158.76 billion | 0.30 | $5.67 billion | $3.56 | 9.29 |
| Booking | $23.74 billion | 6.92 | $5.88 billion | $143.79 | 35.26 |
Booking has lower revenue, but higher earnings than JD.com. JD.com is trading at a lower price-to-earnings ratio than Booking, indicating that it is currently the more affordable of the two stocks.
Dividends
JD.com pays an annual dividend of $0.98 per share and has a dividend yield of 3.0%. Booking pays an annual dividend of $38.40 per share and has a dividend yield of 0.8%. JD.com pays out 27.5% of its earnings in the form of a dividend. Booking pays out 26.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Booking has increased its dividend for 1 consecutive years.
Risk and Volatility
JD.com has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Booking has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Institutional & Insider Ownership
16.0% of JD.com shares are owned by institutional investors. Comparatively, 92.4% of Booking shares are owned by institutional investors. 16.6% of JD.com shares are owned by insiders. Comparatively, 0.2% of Booking shares are owned by 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.
Summary
Booking beats JD.com on 12 of the 18 factors compared between the two stocks.
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.
About Booking
Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).
Receive News & Ratings for JD.com Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for JD.com and related companies with MarketBeat.com's FREE daily email newsletter.
