Chewy (NYSE:CHWY) versus JD.com (NASDAQ:JD) Financial Analysis

JD.com (NASDAQ:JD) and Chewy (NYSE:CHWY) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares JD.com and Chewy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD.com	$158.76 billion	0.27	$5.67 billion	$2.94	10.12
Chewy	$11.86 billion	1.16	$392.74 million	$0.35	95.11

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

Volatility & Risk

JD.com has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Chewy has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Profitability

This table compares JD.com and Chewy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JD.com	2.46%	10.99%	4.80%
Chewy	1.22%	50.45%	5.19%

Analyst Recommendations

This is a breakdown of recent recommendations for JD.com and Chewy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	1	4	10	2	2.76
Chewy	0	4	19	2	2.92

JD.com presently has a consensus price target of $40.43, suggesting a potential upside of 35.94%. Chewy has a consensus price target of $46.17, suggesting a potential upside of 38.68%. Given Chewy’s stronger consensus rating and higher possible upside, analysts clearly believe Chewy is more favorable than JD.com.

Institutional & Insider Ownership

16.0% of JD.com shares are owned by institutional investors. Comparatively, 93.1% of Chewy shares are owned by institutional investors. 16.6% of JD.com shares are owned by company insiders. Comparatively, 0.4% of Chewy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Chewy beats JD.com on 9 of the 14 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 Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.