JD.com (NASDAQ:JD – Get Free Report) and Hour Loop (NASDAQ:HOUR – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Risk and Volatility
JD.com has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.
Insider and Institutional Ownership
16.0% of JD.com shares are owned by institutional investors. Comparatively, 0.3% of Hour Loop shares are owned by institutional investors. 16.6% of JD.com shares are owned by company insiders. Comparatively, 95.0% of Hour Loop shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares JD.com and Hour Loop”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JD.com | $1,313.44 billion | 0.03 | $2.81 billion | $1.44 | 19.76 |
| Hour Loop | $142.44 million | 0.38 | $1.71 million | $0.04 | 38.60 |
JD.com has higher revenue and earnings than Hour Loop. JD.com is trading at a lower price-to-earnings ratio than Hour Loop, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for JD.com and Hour Loop, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JD.com | 1 | 5 | 8 | 0 | 2.50 |
| Hour Loop | 0 | 1 | 0 | 0 | 2.00 |
JD.com presently has a consensus price target of $35.33, indicating a potential upside of 24.17%. Given JD.com’s stronger consensus rating and higher probable upside, equities research analysts plainly believe JD.com is more favorable than Hour Loop.
Profitability
This table compares JD.com and Hour Loop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JD.com | 1.13% | 6.78% | 2.79% |
| Hour Loop | 1.14% | 22.31% | 6.60% |
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 Hour Loop
Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.
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