Apple vs JD.com Which Offers More Value?

Apple Inc. and JD.com Inc. are two powerhouse companies in the tech and e-commerce industries, respectively. Apple, known for its iconic products like the iPhone and Macbook, is a leading player in the consumer electronics market. On the other hand, JD.com is one of the largest e-commerce companies in China, offering a wide range of products and services. Both stocks have seen significant growth in recent years, but each company faces unique challenges and opportunities in the competitive market. In this comparison, we will explore the performance and potential of Apple vs JD.com stocks.

Apple or JD.com?

When comparing Apple and JD.com, 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 Apple and JD.com.

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. Apple has a dividend yield of 0.41%, while JD.com has a dividend yield of 2.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. On the other hand, JD.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.32%.

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 Apple P/E ratio at 39.31 and JD.com's P/E ratio at 11.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 64.69 while JD.com's P/B ratio is 1.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while JD.com's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and JD.com's ROE at 15.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $242.08 for Apple and $37.16 for JD.com. Over the past year, Apple's prices ranged from $164.08 to $244.63, with a yearly change of 49.09%. JD.com's prices fluctuated between $20.82 and $47.82, with a yearly change of 129.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.