Points International (NASDAQ: PCOM) and JD.com (NASDAQ:JD) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Points International and JD.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Points International 0 0 3 0 3.00
JD.com 0 2 15 0 2.88

Points International currently has a consensus target price of $13.50, suggesting a potential upside of 54.46%. JD.com has a consensus target price of $42.94, suggesting a potential upside of 5.06%. Given Points International’s stronger consensus rating and higher probable upside, analysts plainly believe Points International is more favorable than JD.com.

Risk and Volatility

Points International has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, JD.com has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Points International -0.53% 7.56% 3.28%
JD.com -0.95% -1.80% -0.44%

Institutional and Insider Ownership

37.4% of Points International shares are held by institutional investors. Comparatively, 46.3% of JD.com shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Points International and JD.com’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Points International $332.82 million 0.39 $9.00 million ($0.11) -79.45
JD.com N/A N/A N/A ($0.31) -131.83

Points International has higher revenue and earnings than JD.com. JD.com is trading at a lower price-to-earnings ratio than Points International, indicating that it is currently the more affordable of the two stocks.

Summary

Points International beats JD.com on 7 of the 10 factors compared between the two stocks.

About Points International

Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.

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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