JD.com vs Walmart Which Outperforms?

JD.com and Walmart are two retail giants that have made significant moves in the stock market in recent years. JD.com, a Chinese e-commerce company, has seen its stock price surge as it solidifies its position in the competitive online shopping industry. Meanwhile, Walmart, a long-standing retailer with a global presence, has also experienced growth as it continues to innovate and adapt to changing consumer preferences. Both companies face unique challenges and opportunities as they navigate the ever-evolving market landscape.

JD.com or Walmart?

When comparing JD.com and Walmart, 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 Walmart.

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 1.99%, while Walmart has a dividend yield of 0.66%. 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 19.32%. On the other hand, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 12.08 and Walmart's P/E ratio at 38.79. 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 1.84 while Walmart's P/B ratio is 8.66.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with JD.com's ROE at 15.45% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.85 for JD.com and $94.50 for Walmart. Over the past year, JD.com's prices ranged from $20.82 to $47.82, with a yearly change of 129.68%. Walmart's prices fluctuated between $50.21 and $96.18, with a yearly change of 91.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.