Alibaba Group Holding Limited (BABA) vs JD.com, Inc. (JD)

Alibaba Group Holding Limited and JD.com, Inc. are both Internet Retail companies. Alibaba Group Holding Limited is the larger, with a market value of $276.5B against $32.9B — 8.4× the size. JD.com, Inc. trades at the lower P/E: 17.3× against 24.0×. Alibaba Group Holding Limited grew revenue faster over the last twelve months: 10.9% against 10.8%. Alibaba Group Holding Limited has the higher net margin (7.09% vs 1.16%) and the higher return on invested capital (2.99% vs 1.18%). Both pay a dividend; JD.com, Inc. yields more (3.70% vs 0.96%). Across the 22 metrics below, Alibaba Group Holding Limited leads on 12 and JD.com, Inc. on 10.

Valuation

Metric BABA JD Internet Retail median
P/E 23.98 17.31 24.35
P/S 1.66 0.19 0.69
P/B 1.56 0.89 1.66
Price to free cash flow n/m n/m 15.23
EV/EBITDA 34.59 34.91 19.14
EV/Sales 1.50 0.05 0.75
Earnings yield 4.17% 5.78% (0.17%)
Free cash flow yield (10.55%) (2.10%) 0.00%

Profitability

Metric BABA JD Internet Retail median
Gross margin 38.26% 16.58% 43.51%
Operating margin 4.34% 0.15% 0.08%
Net margin 7.09% 1.16% 0.56%
Free cash flow margin 7.52% 3.89% 0.00%
Return on equity 6.93% 0.00% 0.00%
Return on assets 3.98% 2.17% 0.00%
Return on invested capital 2.99% 1.18% 0.00%

Growth

Metric BABA JD Internet Retail median
Revenue growth (TTM) 10.89% 10.82% 10.80%
EPS growth (last fiscal year) (13.55%) (50.00%) 14.02%
Revenue growth, 5-year CAGR 6.27% 10.37% 10.81%
Net income growth, 5-year CAGR (7.72%) (18.00%) 0.00%

Health

Metric BABA JD Internet Retail median
Debt to equity 0.24 0.20 0.10
Current ratio 1.36 1.14 1.48
Net debt to EBITDA (0.93) (12.37) (0.25)

Dividend

Metric BABA JD Internet Retail median
Dividend yield 0.96% 3.70% 1.79%
Payout ratio 0.25 0.69 0.25

Size

Metric BABA JD Internet Retail median
Market cap 276.46b 32.94b 413.81m

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