JD.com vs Sea Which Should You Buy?

JD.com and Sea Limited are two prominent e-commerce giants in the Asian market, with each company having its own unique offerings and market strategies. JD.com is a leading Chinese e-commerce platform known for its vast product selection and reliable delivery services, while Sea Limited, based in Singapore, operates in multiple markets including online gaming, e-commerce, and digital financial services. Both companies have experienced significant growth in recent years, making them competitive players in the global e-commerce industry.

JD.com or Sea?

When comparing JD.com and Sea, 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 JD.com and Sea.

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. JD.com has a dividend yield of 0.27%, while Sea has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. JD.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.68%. On the other hand, Sea 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 JD.com P/E ratio at 27.24 and Sea's P/E ratio at -285.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. JD.com P/B ratio is 3.85 while Sea's P/B ratio is 8.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, JD.com has seen a 5-year revenue growth of 1.12%, while Sea's is 8.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with JD.com's ROE at 13.74% and Sea's ROE at -2.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $38.62 for JD.com and $92.71 for Sea. Over the past year, JD.com's prices ranged from $20.82 to $47.82, with a yearly change of 129.68%. Sea's prices fluctuated between $34.35 and $101.93, with a yearly change of 196.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.