JD Logistics vs Alibaba Which Is a Better Investment?

JD Logistics and Alibaba are two giants in the e-commerce and logistics industry in China. While Alibaba is known for its online retail platform and global presence, JD Logistics is a subsidiary of JD.com that focuses on providing comprehensive logistics services. Both companies have seen significant growth in the past few years, but there are differences in their business models and strategies. Investors have shown interest in both stocks as they navigate the competitive market and evolving consumer behaviors.

JD Logistics or Alibaba?

When comparing JD Logistics and Alibaba, 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 Logistics and Alibaba.

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 Logistics has a dividend yield of -%, while Alibaba has a dividend yield of 3.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. JD Logistics reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%.

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 Logistics P/E ratio at 24.44 and Alibaba's P/E ratio at 18.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. JD Logistics P/B ratio is 1.69 while Alibaba's P/B ratio is 1.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, JD Logistics has seen a 5-year revenue growth of 3.25%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with JD Logistics's ROE at 6.74% and Alibaba's ROE at 8.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$13.66 for JD Logistics and $87.24 for Alibaba. Over the past year, JD Logistics's prices ranged from HK$6.61 to HK$16.84, with a yearly change of 154.77%. Alibaba's prices fluctuated between $66.63 and $117.82, with a yearly change of 76.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.