Financial Comparison: JD.com (NASDAQ:JD) & Points International (PCOM)

JD.com (NASDAQ: JD) and Points International (NASDAQ:PCOM) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitabiliy, institutional ownership, valuation and risk.

Risk & Volatility

JD.com has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Points International has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Insider & Institutional Ownership

49.2% of JD.com shares are held by institutional investors. Comparatively, 37.4% of Points International shares are held by institutional investors. 16.6% of JD.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares JD.com and Points International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JD.com $42.05 billion 1.56 $489.36 million ($0.29) -158.93
Points International $330.94 million 0.37 $9.54 million ($0.11) -74.55

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for JD.com and Points International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JD.com 0 4 13 0 2.76
Points International 0 0 3 0 3.00

JD.com presently has a consensus target price of $38.31, suggesting a potential downside of 16.87%. Points International has a consensus target price of $13.50, suggesting a potential upside of 64.63%. Given Points International’s stronger consensus rating and higher probable upside, analysts clearly believe Points International is more favorable than JD.com.

Profitability

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

Net Margins Return on Equity Return on Assets
JD.com -0.96% -1.46% -0.38%
Points International -0.53% 7.61% 3.29%

Summary

JD.com beats Points International on 7 of the 13 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.

Points International Company Profile

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

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