Critical Analysis: WeBuy Global (NASDAQ:WBUY) & JD.com (NASDAQ:JD)

JD.com (NASDAQ:JD) and WeBuy Global (NASDAQ:WBUY) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares JD.com and WeBuy Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD.com	$158.76 billion	0.25	$5.67 billion	$2.94	9.54
WeBuy Global	$58.30 million	0.03	-$6.62 million	N/A	N/A

JD.com has higher revenue and earnings than WeBuy Global.

Profitability

This table compares JD.com and WeBuy Global’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%
WeBuy Global	N/A	N/A	N/A

Volatility & Risk

JD.com has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, WeBuy Global has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	2	3	11	1	2.65
WeBuy Global	1	0	0	0	1.00

JD.com currently has a consensus target price of $38.71, suggesting a potential upside of 38.07%. Given JD.com’s stronger consensus rating and higher possible upside, equities analysts clearly believe JD.com is more favorable than WeBuy Global.

Insider and Institutional Ownership

16.0% of JD.com shares are held by institutional investors. Comparatively, 0.3% of WeBuy Global shares are held by institutional investors. 16.6% of JD.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

JD.com beats WeBuy Global on 12 of the 13 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 WeBuy Global

Webuy Global Ltd operates as an e-commerce retailer company in Singapore, Indonesia, and Malaysia. The company sells food and beverages, fresh produces, lifestyle daily essential items, e-vouchers, miscellaneous daily needs products, and other personal care products, as well as sells packaged tours. Webuy Global Ltd was founded in 2019 and is based in Singapore.