Alibaba vs JD Logistics Which Is Superior?

Alibaba and JD Logistics are two prominent players in the booming e-commerce industry in China. While Alibaba is a giant in the online retail space, JD Logistics is a subsidiary of JD.com, focusing on providing fulfillment and delivery services. Both companies have seen their stocks rise in recent years as the demand for online shopping continues to grow. Investors are closely watching how these two competitors navigate the rapidly evolving logistics landscape and position themselves for future success.

Alibaba or JD Logistics?

When comparing Alibaba and JD Logistics, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alibaba and JD Logistics.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alibaba has a dividend yield of 3.01%, while JD Logistics has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%. On the other hand, JD Logistics reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alibaba P/E ratio at 18.25 and JD Logistics's P/E ratio at 24.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alibaba P/B ratio is 1.65 while JD Logistics's P/B ratio is 1.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alibaba has seen a 5-year revenue growth of 2.38%, while JD Logistics's is 3.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 8.88% and JD Logistics's ROE at 6.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.24 for Alibaba and HK$13.78 for JD Logistics. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. JD Logistics's prices fluctuated between HK$6.61 and HK$16.84, with a yearly change of 154.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.