JD.Com (NASDAQ:JD) and Star Group (NYSE:SGU) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Volatility and Risk
JD.Com has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Star Group has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.
51.0% of JD.Com shares are owned by institutional investors. Comparatively, 44.5% of Star Group shares are owned by institutional investors. 20.4% of Star Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for JD.Com and Star Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
JD.Com presently has a consensus target price of $38.62, indicating a potential upside of 72.54%. Given JD.Com’s higher possible upside, analysts plainly believe JD.Com is more favorable than Star Group.
Valuation and Earnings
This table compares JD.Com and Star Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|JD.Com||$55.69 billion||0.48||-$23.39 million||$0.01||2,238.00|
|Star Group||$1.32 billion||0.39||$26.90 million||N/A||N/A|
Star Group has lower revenue, but higher earnings than JD.Com.
Star Group pays an annual dividend of $0.47 per share and has a dividend yield of 4.9%. JD.Com does not pay a dividend.
This table compares JD.Com and Star Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
JD.Com beats Star Group on 7 of the 13 factors compared between the two stocks.
JD.Com Company Profile
JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Mall and New Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women's shoes, bags, jewelry, and luxury goods; men's shoes, sports gears, and fitness equipment; automobiles and accessories; mother and childcare products, toys, and instruments; and food, beverage, and fresh produce. It also provides gifts, flowers, and plants; nutritional supplements; books, e-books, music, movie, and other media products; and virtual goods, such as online travel agency, attraction tickets, and prepaid phone and game cards, as well as consumer electronic products. In addition, the company offers an online marketplace for third-party sellers to sell products to customers; and transaction processing and billing, value-added fulfillment, and other services. Further, it provides online marketing services for suppliers, merchants, and other partners; logistics services for various industries; consumer financing services to individual customers; and supply chain financing services to suppliers and merchants. Additionally, the company offers online-to-offline solutions for customers and offline retailers, as well as online and in-person payment options and customer services. JD.com, Inc. offers its products through its Website jd.com and mobile apps, as well as directly to customers. As of December 31, 2017, JD.com, Inc. operated 7 fulfillment centers and 486 warehouses in 78 cities covering various counties and districts. The company has strategic cooperation agreement with Tencent Holdings Limited and Vipshop Holdings Ltd. JD.com, Inc. is headquartered in Beijing, China.
Star Group Company Profile
Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States. It also installs, maintains, and repairs heating and air conditioning equipment, as well as offers ancillary home services, including home security and plumbing. As of September 30, 2017, the company sold home heating oil and propane to approximately 455,000 full service residential and commercial customers. It also sells home heating oil, gasoline, and diesel fuel to approximately 74,000 customers on a delivery only basis. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was founded in 1995 and is headquartered in Stamford, Connecticut.
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