Foot Locker vs JD.com Which Is More Lucrative?

Foot Locker and JD.com are two prominent companies in the retail industry, each offering a unique investment opportunity for stock market enthusiasts. Foot Locker, a well-known athletic footwear and apparel retailer, has a strong presence in the United States and around the world. On the other hand, JD.com is a Chinese e-commerce giant that has been rapidly expanding its business globally. Both companies have shown resilience amidst market fluctuations, making them intriguing options for investors seeking growth potential in the retail sector.

Foot Locker or JD.com?

When comparing Foot Locker 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 Foot Locker 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. Foot Locker has a dividend yield of -%, while JD.com has a dividend yield of 1.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Foot Locker reports a 5-year dividend growth of 3.53% year and a payout ratio of -10.41%. 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 Foot Locker P/E ratio at -5.68 and JD.com's P/E ratio at 13.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Foot Locker P/B ratio is 0.72 while JD.com's P/B ratio is 1.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Foot Locker has seen a 5-year revenue growth of 0.26%, while JD.com's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Foot Locker's ROE at -12.29% 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 $21.63 for Foot Locker and $40.53 for JD.com. Over the past year, Foot Locker's prices ranged from $19.33 to $35.60, with a yearly change of 84.17%. 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.