Coupang vs JD.com Which Performs Better?

Coupang and JD.com are two prominent players in the e-commerce space, with both companies commanding a significant market presence in their respective regions. Coupang, known as the "Amazon of South Korea," has seen rapid growth and popularity due to its efficient delivery services and vast product offerings. On the other hand, JD.com, China's largest online retailer, has a strong foothold in the competitive Chinese market. Investors looking to capitalize on the e-commerce boom may find both Coupang and JD.com stocks worth considering for their investment portfolios.

Coupang or JD.com?

When comparing Coupang 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 Coupang 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. Coupang has a dividend yield of -%, 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. Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Coupang P/E ratio at 41.61 and JD.com's P/E ratio at 11.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coupang P/B ratio is 10.24 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, Coupang has seen a 5-year revenue growth of 4.40%, while JD.com's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% 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 $23.66 for Coupang and $36.92 for JD.com. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. 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.