Head-To-Head Contrast: JD.com (NASDAQ:JD) & RideNow Group (NASDAQ:RDNW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JD.com	1.48%	7.56%	3.26%
RideNow Group	-4.84%	-360.78%	-2.57%

Institutional & Insider Ownership

16.0% of JD.com shares are held by institutional investors. Comparatively, 66.1% of RideNow Group shares are held by institutional investors. 16.6% of JD.com shares are held by company insiders. Comparatively, 54.7% of RideNow Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD.com	$187.20 billion	0.21	$2.81 billion	$1.76	15.76
RideNow Group	$1.08 billion	0.22	-$78.60 million	($2.80)	-2.22

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

Risk and Volatility

JD.com has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, RideNow Group has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for JD.com and RideNow Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	2	3	11	0	2.56
RideNow Group	1	2	1	0	2.00

JD.com currently has a consensus target price of $36.36, indicating a potential upside of 31.11%. RideNow Group has a consensus target price of $6.00, indicating a potential downside of 3.38%. Given JD.com’s stronger consensus rating and higher probable upside, research analysts plainly believe JD.com is more favorable than RideNow Group.

Summary

JD.com beats RideNow Group on 10 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 RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.