Analyzing JD.com (JD) and Altaba (YHOO)

JD.com (NASDAQ: JD) and Altaba (NASDAQ:YHOO) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitabiliy, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares JD.com and Altaba’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%
Altaba -1.04% 1.20% -0.11%

Volatility and Risk

JD.com has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Altaba has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for JD.com and Altaba, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JD.com 0 7 14 0 2.67
Altaba 0 16 10 0 2.38

JD.com currently has a consensus price target of $35.54, indicating a potential downside of 10.56%. Altaba has a consensus price target of $47.48, indicating a potential downside of 9.70%. Given Altaba’s higher probable upside, analysts plainly believe Altaba is more favorable than JD.com.

Institutional and Insider Ownership

49.1% of JD.com shares are owned by institutional investors. Comparatively, 82.1% of Altaba shares are owned by institutional investors. 9.2% of Altaba shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares JD.com and Altaba’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JD.com $41.18 billion 1.37 $479.24 million ($0.29) -137.03
Altaba N/A N/A N/A ($0.02) -2,627.69

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

Summary

Altaba beats JD.com on 7 of the 11 factors compared between the two stocks.

About JD.com

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.

About Altaba

Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.

Receive News & Ratings for JD.com Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for JD.com Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply