JD.com (NASDAQ:JD – Get Free Report) and Linkage Global (NASDAQ:LGCB – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Valuation & Earnings
This table compares JD.com and Linkage Global”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JD.com | $187.20 billion | 0.22 | $2.81 billion | $1.76 | 16.58 |
| Linkage Global | $5.10 million | 3.07 | -$7.37 million | N/A | N/A |
Risk & Volatility
JD.com has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Linkage Global has a beta of -1.03, suggesting that its stock price is 203% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for JD.com and Linkage Global, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JD.com | 1 | 4 | 11 | 0 | 2.63 |
| Linkage Global | 1 | 0 | 0 | 0 | 1.00 |
JD.com currently has a consensus target price of $36.36, indicating a potential upside of 24.60%. Given JD.com’s stronger consensus rating and higher possible upside, equities research analysts clearly believe JD.com is more favorable than Linkage Global.
Profitability
This table compares JD.com and Linkage Global’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% |
| Linkage Global | N/A | N/A | N/A |
Insider & Institutional Ownership
16.0% of JD.com shares are owned by institutional investors. Comparatively, 0.3% of Linkage Global shares are owned by institutional investors. 16.6% of JD.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
JD.com beats Linkage Global on 11 of the 12 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 Linkage Global
Linkage Global Inc, through its subsidiaries, operates as a cross-border e-commerce integrated services provider in Japan, Hong Kong, and Mainland China. It provides cross-border product sales; digital marketing services; and e-commerce operation training and software support services. Linkage Global Inc was founded in 2011 and is headquartered in Tokyo, Japan.
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