Financial Analysis: Jowell Global (NASDAQ:JWEL) and JD.com (NASDAQ:JD)

Jowell Global (NASDAQ:JWEL) and JD.com (NASDAQ:JD) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Institutional & Insider Ownership

0.1% of Jowell Global shares are held by institutional investors. Comparatively, 16.0% of JD.com shares are held by institutional investors. 21.2% of Jowell Global shares are held by company insiders. Comparatively, 16.6% of JD.com shares are held 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.

Volatility & Risk

Jowell Global has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, JD.com has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Dividends

Jowell Global pays an annual dividend of $0.21 per share and has a dividend yield of 11.7%. JD.com pays an annual dividend of $0.98 per share and has a dividend yield of 3.0%. JD.com pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jowell Global	N/A	N/A	N/A
JD.com	1.04%	5.90%	2.48%

Analyst Recommendations

This is a summary of current recommendations and price targets for Jowell Global and JD.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jowell Global	1	0	0	0	1.00
JD.com	1	3	9	1	2.71

JD.com has a consensus price target of $36.42, indicating a potential upside of 10.74%. Given JD.com’s stronger consensus rating and higher possible upside, analysts clearly believe JD.com is more favorable than Jowell Global.

Earnings and Valuation

This table compares Jowell Global and JD.com”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jowell Global	$165.00 million	0.03	-$6.28 million	N/A	N/A
JD.com	$187.20 billion	0.22	$2.81 billion	$1.28	25.69

JD.com has higher revenue and earnings than Jowell Global.

Summary

JD.com beats Jowell Global on 11 of the 15 factors compared between the two stocks.

About Jowell Global

Jowell Global Ltd. engages in the online retail of cosmetics, health and nutritional supplements, and household products in China. It also sells skin care, body care, and baby and children's products; washing items; fragrances; food products; electronics; and apparel. In addition, it sells its products through retail stores under the Love Home Store, LHH Store, and Juhao Best Choice Store brand names. The company also offers an online marketplace that enables third-party sellers to sell their products to the company's consumers. Jowell Global Ltd. was founded in 2012 and is based in Shanghai, China.

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.