Cnova NV (NASDAQ: CNV) and JD.com (NASDAQ:JD) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Risk & Volatility

Cnova NV has a beta of 2.64, suggesting that its share price is 164% more volatile than the S&P 500. Comparatively, JD.com has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cnova NV -3.30% N/A -6.49%
JD.com -0.95% -1.80% -0.44%

Earnings & Valuation

This table compares Cnova NV and JD.com’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cnova NV N/A N/A N/A ($0.94) -5.64
JD.com N/A N/A N/A ($0.31) -126.48

JD.com is trading at a lower price-to-earnings ratio than Cnova NV, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Cnova NV and JD.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cnova NV 0 1 0 0 2.00
JD.com 0 2 16 0 2.89

JD.com has a consensus target price of $43.35, suggesting a potential upside of 10.57%. Given JD.com’s stronger consensus rating and higher possible upside, analysts clearly believe JD.com is more favorable than Cnova NV.

Insider & Institutional Ownership

3.0% of Cnova NV shares are owned by institutional investors. Comparatively, 46.4% of JD.com shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

JD.com beats Cnova NV on 7 of the 9 factors compared between the two stocks.

About Cnova NV

Cnova N.V. is an e-commerce company with its two markets in France and Brazil. The Company offers differentiated delivery and payment solutions. It operates through three segments: Cdiscount France, Cdiscount International and Cnova Brazil. The Cdiscount France segment is engaged in the retail sales of consumer products through Cdiscount.com and specialized Websites in France. The Cdiscount International segment is engaged in retail sales of consumer products through Websites created by Cdiscount S.A. (Cdiscount) outside of France. The Cnova Brazil segment is engaged in retail sales of consumer products through Websites in Brazil, including Extra.com.br, PontoFrio.com.br, CasasBahia.com.br, Barateiro.com.br, PartiuViagens.com.br, and wholesale activities and E-Hub. As of December 31, 2015, it offered over 29 million product offerings on its sites through its direct sales and marketplace businesses across various categories, such as consumer electronics, home appliances and computers.

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.

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