Critical Survey: JD.com (JD) and Cnova NV (CNV)
JD.com (NASDAQ: JD) and Cnova NV (NASDAQ:CNV) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
This table compares JD.com and Cnova NV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for JD.com and Cnova NV, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
JD.com presently has a consensus price target of $44.13, suggesting a potential upside of 9.44%. Given JD.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe JD.com is more favorable than Cnova NV.
Insider and Institutional Ownership
46.4% of JD.com shares are owned by institutional investors. Comparatively, 3.0% of Cnova NV shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares JD.com and Cnova NV’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
JD.com is trading at a lower price-to-earnings ratio than Cnova NV, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
JD.com has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Cnova NV has a beta of 2.64, suggesting that its share price is 164% more volatile than the S&P 500.
JD.com beats Cnova NV on 7 of the 9 factors compared between the two stocks.
JD.com Company Profile
JD.com, Inc. is an online direct sales company. The Company engages in the sale of electronics and home appliance products and general merchandise products (including audio, video products and books) sourced from manufacturers, distributors and publishers in China on the Internet through its Website, www.jd.com. It also offers an online marketplace that enables third-party sellers to sell their products to customers on the Company’s Website. The Company operates through the provision of a single class of services for accelerating and improving the delivery of its products over the Internet. The Company also offers online and in-person payment options and customer services. The Company operates approximately 210 warehouses with an aggregate gross floor area of approximately four million square meters in over 50 cities. It operates over 5,370 delivery stations and pickup stations in approximately 2,350 counties and districts across China.
Cnova NV Company Profile
Cnova N.V. is an e-commerce company with its two markets in France and Brazil. The Company offers differentiated delivery and payment solutions. It operates through three segments: Cdiscount France, Cdiscount International and Cnova Brazil. The Cdiscount France segment is engaged in the retail sales of consumer products through Cdiscount.com and specialized Websites in France. The Cdiscount International segment is engaged in retail sales of consumer products through Websites created by Cdiscount S.A. (Cdiscount) outside of France. The Cnova Brazil segment is engaged in retail sales of consumer products through Websites in Brazil, including Extra.com.br, PontoFrio.com.br, CasasBahia.com.br, Barateiro.com.br, PartiuViagens.com.br, and wholesale activities and E-Hub. As of December 31, 2015, it offered over 29 million product offerings on its sites through its direct sales and marketplace businesses across various categories, such as consumer electronics, home appliances and computers.
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