JD.com (NASDAQ:JD – Get Free Report) and QVC Group (NASDAQ:QVCGA – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
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, QVC Group has a beta of 3.04, indicating that its stock price is 204% more volatile than the S&P 500.
Profitability
This table compares JD.com and QVC Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JD.com | 2.46% | 11.02% | 4.86% |
| QVC Group | -37.71% | N/A | -13.21% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JD.com | 1 | 4 | 9 | 2 | 2.75 |
| QVC Group | 1 | 0 | 0 | 0 | 1.00 |
JD.com presently has a consensus price target of $40.69, suggesting a potential upside of 38.83%. Given JD.com’s stronger consensus rating and higher possible upside, research analysts plainly believe JD.com is more favorable than QVC Group.
Earnings & Valuation
This table compares JD.com and QVC Group”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 | 0.26 | $5.67 billion | $2.94 | 9.97 |
| QVC Group | $9.50 billion | 0.01 | -$1.29 billion | ($460.35) | -0.01 |
JD.com has higher revenue and earnings than QVC Group. QVC 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.
Insider and Institutional Ownership
16.0% of JD.com shares are held by institutional investors. Comparatively, 64.1% of QVC Group shares are held by institutional investors. 16.6% of JD.com shares are held by company insiders. Comparatively, 12.4% of QVC Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
JD.com beats QVC Group on 13 of the 15 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 QVC Group
QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.
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