Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy

Seekingalpha2021-06-11

Summary Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China. BABA and JD operate with different business models, which is why...

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gevaudan
·2021-06-19
JD would be nice
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Tanjunkhim
·2021-06-14
Ok
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Irenexin
·2021-06-13
nice
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helenah
·2021-06-13
Buy both then
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Tjs
·2021-06-13
Good read
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Ychia1761
·2021-06-13
自己選擇。
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Gab_Boey
·2021-06-13
Post
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buckethead
·2021-06-12
Just buy both
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- jimmyjr:
  Thats the way
  2021-06-13
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- KarHingc:
  Nice ?
  2021-06-13
  Reply
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ProsPaddles
·2021-06-12
I agree with you! It can only be BABA!
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X97_79X
·2021-06-12
Baba all the way
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Nebhol
·2021-06-12
Buy baba
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SandDust
·2021-06-12
Of course Ali, but I prefer Tencent because the marketplace is too competitive.. Please like and comment
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2
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WEEWIN
·2021-06-12
Good read
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KLok
·2021-06-12
Alibaba....... of course...
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jkleiderc
·2021-06-12
like
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ykhoo
·2021-06-12
Alibaba
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A蔓妲
·2021-06-12
Buy
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HR168
·2021-06-12
Bought
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JngJiaRong
·2021-06-12
baba
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JFK23
·2021-06-12
Can buy both for long term[強] [強]
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JD.com: Which Chinese Stock Is The Better Buy","media":"Seekingalpha","content":"<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. 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JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"09618","symbol_name":"京东集团-SW","start_time":0,"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","article_id":"1195128984","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","pubTimestamp":1623416618,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东","BABA":"阿里巴巴"},"translate_title":"阿里巴巴-SW对。京东：买哪只中国股票更好","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"09618":0.9,"09988":0.9,"BABA":0.9,"JD":0.9},"content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":162372673,"gmtCreate":1624037513592,"gmtModify":1703827431297,"author":{"id":"3586156849864376","authorId":"3586156849864376","name":"gevaudan","avatar":"https://static.tigerbbs.com/ef67e2701d5cd30aac4a079314c38280","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3586156849864376","authorIdStr":"3586156849864376"},"htmlText":"JD would be nice","listText":"JD would be nice","text":"JD would be nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/162372673","repostId":1195128984,"repostType":2,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":182701711,"gmtCreate":1623603168833,"gmtModify":1704206885112,"author":{"id":"3579766843142284","authorId":"3579766843142284","name":"Tanjunkhim","avatar":"https://static.tigerbbs.com/01f879a2ea986152920923f7c5564c29","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3579766843142284","authorIdStr":"3579766843142284"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/182701711","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":182511984,"gmtCreate":1623587999348,"gmtModify":1704206654843,"author":{"id":"3582182980842499","authorId":"3582182980842499","name":"Irenexin","avatar":"https://static.tigerbbs.com/8a741b3f4bc22bb3d6b757232464b517","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582182980842499","authorIdStr":"3582182980842499"},"htmlText":"nice","listText":"nice","text":"nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/182511984","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":182539029,"gmtCreate":1623586746161,"gmtModify":1704206639317,"author":{"id":"3583378458571648","authorId":"3583378458571648","name":"helenah","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3583378458571648","authorIdStr":"3583378458571648"},"htmlText":"Buy both then","listText":"Buy both then","text":"Buy both then","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/182539029","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":182680983,"gmtCreate":1623568558842,"gmtModify":1704206399139,"author":{"id":"3585362647544869","authorId":"3585362647544869","name":"Tjs","avatar":"https://static.tigerbbs.com/f297155d3eb2fdd05631b3427342e682","vip":1,"crmLevel":6,"crmLevelSwitch":1,"idStr":"3585362647544869","authorIdStr":"3585362647544869"},"htmlText":"Good read","listText":"Good read","text":"Good read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/182680983","repostId":1195128984,"repostType":2,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":182331816,"gmtCreate":1623553255235,"gmtModify":1704205974590,"author":{"id":"3572055614914535","authorId":"3572055614914535","name":"Ychia1761","avatar":"https://static.tigerbbs.com/86fc697237da30bd6102449174caafb8","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3572055614914535","authorIdStr":"3572055614914535"},"htmlText":"自己選擇。","listText":"自己選擇。","text":"自己選擇。","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/182331816","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":186579498,"gmtCreate":1623514817614,"gmtModify":1704205391659,"author":{"id":"3579833810423165","authorId":"3579833810423165","name":"Gab_Boey","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3579833810423165","authorIdStr":"3579833810423165"},"htmlText":"Post&nbsp;","listText":"Post&nbsp;","text":"Post","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186579498","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186294709,"gmtCreate":1623499861601,"gmtModify":1704205161589,"author":{"id":"3573341177962944","authorId":"3573341177962944","name":"buckethead","avatar":"https://static.tigerbbs.com/fb0baba9e10b75fa4dc0ff143e54bbea","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3573341177962944","authorIdStr":"3573341177962944"},"htmlText":"Just buy both&nbsp;","listText":"Just buy both&nbsp;","text":"Just buy both","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/186294709","repostId":1195128984,"repostType":2,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4717904,"gmtCreate":1623545141010,"gmtModify":1663228612433,"authorId":3575451051162247,"author":{"id":3575451051162247,"idStr":"3575451051162247","authorId":3575451051162247,"name":"jimmyjr","avatar":"https://static.tigerbbs.com/69b1c06a795502492bc5eb64b48323c0","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":186294709,"type":1,"supId":0,"prevId":0,"content":"Thats the way","text":"Thats the way","html":"Thats the way"},{"id":4716523,"gmtCreate":1623540447440,"gmtModify":1663228605825,"authorId":3574371072881465,"author":{"id":3574371072881465,"idStr":"3574371072881465","authorId":3574371072881465,"name":"KarHingc","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-3","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"President Tiger","description":"The transaction amount of the securities account reaches $1,000,000","bigImgUrl":"https://static.tigerbbs.com/fbeac6bb240db7da8b972e5183d050ba","smallImgUrl":"https://static.tigerbbs.com/436cdf80292b99f0a992e78750ac4e3a","grayImgUrl":"https://static.tigerbbs.com/506a259a7b456f037592c3b23c779599","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.14","exceedPercentage":"93.30%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":186294709,"type":1,"supId":0,"prevId":0,"content":"Nice ?","text":"Nice ?","html":"Nice ?"}],"langContent":"EN"},{"id":186860226,"gmtCreate":1623485040465,"gmtModify":1704204930906,"author":{"id":"3571919991986405","authorId":"3571919991986405","name":"ProsPaddles","avatar":"https://static.tigerbbs.com/5743775abc150fab8749a749f0511b63","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3571919991986405","authorIdStr":"3571919991986405"},"htmlText":"I agree with you! It can only be BABA!&nbsp;","listText":"I agree with you! It can only be BABA!&nbsp;","text":"I agree with you! It can only be BABA!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186860226","repostId":1195128984,"repostType":2,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186838745,"gmtCreate":1623483416187,"gmtModify":1704204894449,"author":{"id":"3574463755044817","authorId":"3574463755044817","name":"X97_79X","avatar":"https://static.tigerbbs.com/1ede5ef6e4a08456412794c8f58d63b5","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3574463755044817","authorIdStr":"3574463755044817"},"htmlText":"Baba all the way","listText":"Baba all the way","text":"Baba all the way","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186838745","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186989586,"gmtCreate":1623469151445,"gmtModify":1704204512860,"author":{"id":"3567411499210880","authorId":"3567411499210880","name":"Nebhol","avatar":"https://static.tigerbbs.com/b0bfc2a45b91e41a283614268857b3a5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3567411499210880","authorIdStr":"3567411499210880"},"htmlText":"Buy baba","listText":"Buy baba","text":"Buy baba","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186989586","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186011039,"gmtCreate":1623464955821,"gmtModify":1704204364934,"author":{"id":"3581331938298103","authorId":"3581331938298103","name":"SandDust","avatar":"https://static.tigerbbs.com/ea6083d742fc232449a625fb122842c8","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3581331938298103","authorIdStr":"3581331938298103"},"htmlText":"Of course Ali, but I prefer Tencent because the marketplace is too competitive..&nbsp;Please like and comment&nbsp;","listText":"Of course Ali, but I prefer Tencent because the marketplace is too competitive..&nbsp;Please like and comment&nbsp;","text":"Of course Ali, but I prefer Tencent because the marketplace is too competitive.. Please like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186011039","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186003802,"gmtCreate":1623464047306,"gmtModify":1704204321487,"author":{"id":"3575796343019537","authorId":"3575796343019537","name":"WEEWIN","avatar":"https://static.tigerbbs.com/ee27d01b572fbf6a8fcda10a7ac0597f","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3575796343019537","authorIdStr":"3575796343019537"},"htmlText":"Good read","listText":"Good read","text":"Good read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186003802","repostId":1195128984,"repostType":2,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188212024,"gmtCreate":1623447424268,"gmtModify":1704203816693,"author":{"id":"3582450584533032","authorId":"3582450584533032","name":"KLok","avatar":"https://static.tigerbbs.com/7d135114c7d99f91051322404730d3e0","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3582450584533032","authorIdStr":"3582450584533032"},"htmlText":"Alibaba....... of course...","listText":"Alibaba....... of course...","text":"Alibaba....... of course...","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188212024","repostId":1195128984,"repostType":2,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188239314,"gmtCreate":1623444874138,"gmtModify":1704203796534,"author":{"id":"3571495526057426","authorId":"3571495526057426","name":"jkleiderc","avatar":"https://static.tigerbbs.com/7e040aa6cc25876751fde605e73440b9","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3571495526057426","authorIdStr":"3571495526057426"},"htmlText":"like","listText":"like","text":"like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188239314","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188204292,"gmtCreate":1623440536216,"gmtModify":1704203780947,"author":{"id":"3580621459771902","authorId":"3580621459771902","name":"ykhoo","avatar":"https://static.tigerbbs.com/17429448896a95bc7ed438b67951084a","vip":1,"hat":"https://static.tigerbbs.com/646756f1284a5a6480ed02cc4fa7d1d2","crmLevel":9,"crmLevelSwitch":1,"idStr":"3580621459771902","authorIdStr":"3580621459771902"},"htmlText":"Alibaba","listText":"Alibaba","text":"Alibaba","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188204292","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188642405,"gmtCreate":1623436505607,"gmtModify":1704203752792,"author":{"id":"3577651105058225","authorId":"3577651105058225","name":"A蔓妲","avatar":"https://static.tigerbbs.com/67011bc9ee75299633a6a00c16800337","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3577651105058225","authorIdStr":"3577651105058225"},"htmlText":"Buy","listText":"Buy","text":"Buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188642405","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188682945,"gmtCreate":1623432590387,"gmtModify":1704203699650,"author":{"id":"3581916785611869","authorId":"3581916785611869","name":"HR168","avatar":"https://static.tigerbbs.com/356e8960c8bfee1a1e833ae1f39e0cc1","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581916785611869","authorIdStr":"3581916785611869"},"htmlText":"Bought&nbsp;","listText":"Bought&nbsp;","text":"Bought","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188682945","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188692139,"gmtCreate":1623430887121,"gmtModify":1704203659639,"author":{"id":"3584342589442845","authorId":"3584342589442845","name":"JngJiaRong","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3584342589442845","authorIdStr":"3584342589442845"},"htmlText":"baba","listText":"baba","text":"baba","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188692139","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":188840874,"gmtCreate":1623429379398,"gmtModify":1704203608691,"author":{"id":"3577142139469832","authorId":"3577142139469832","name":"JFK23","avatar":"https://static.tigerbbs.com/6bdaa6cc4eddbc577da598bd89525cf0","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3577142139469832","authorIdStr":"3577142139469832"},"htmlText":"Can buy both for long term[強]&nbsp;[強]&nbsp;","listText":"Can buy both for long term[強]&nbsp;[強]&nbsp;","text":"Can buy both for long term[強] [強]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/188840874","repostId":1195128984,"repostType":4,"repost":{"id":"1195128984","pubTimestamp":1623416618,"share":"https://ttm.financial/m/news/1195128984?lang=&edition=fundamental","pubTime":"2021-06-11 21:03","market":"us","language":"en","title":"Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1195128984","media":"Seekingalpha","summary":"Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.BABA and JD operate with different business models, which is why BABA generates significantly higher margins.The Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping c","content":"Summary\n<ul>\n <li>Alibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.</li>\n <li>BABA and JD operate with different business models, which is why BABA generates significantly higher margins.</li>\n <li>The growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.</li>\n</ul>\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n<img src=\"https://static.tigerbbs.com/c26f2ff289114ca6ac216d075961f252\" tg-width=\"635\" tg-height=\"515\">\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&amp;A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n<img src=\"https://static.tigerbbs.com/dd91edeaa64807108941f40b4570b3e8\" tg-width=\"635\" tg-height=\"535\">\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Vs. JD.com: Which Chinese Stock Is The Better Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Vs. JD.com: Which Chinese Stock Is The Better Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 21:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy>Seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why...\n\n<a href=\"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09618":"京东集团-SW","09988":"阿里巴巴-W","JD":"京东"},"source_url":"https://seekingalpha.com/article/4434233-alibaba-vs-jd-com-better-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1195128984","content_text":"Summary\n\nAlibaba Group and JD.com Inc. are high-growth players that benefit from digitalization and growing consumer spending in China.\nBABA and JD operate with different business models, which is why BABA generates significantly higher margins.\nThe growth outlook is very strong for both companies, but investors should consider valuation differences between the two companies.\n\nArticle Thesis\nThe Chinese middle class is growing quickly, which results in strong consumer spending growth. On top of that, Chinese consumers use e-commerce solutions widely, which naturally means that there is a very large, and growing, market opportunity for online shopping companies such as Alibaba Group (BABA) and JD.com Inc. (JD). In this article, we will take a look at these two companies, how they compare, their similarities and differences, and try to find out which company is the better pick at current prices.\nAlibaba Stock Price\nBABA is one of the largest Chinese tech companies, being valued at $590 billion. Its shares are up by triple digits since the IPO a couple of years ago, but over the more recent past, BABA has not been a strong performer. At $214 today, shares are down around one-third from the peak that was hit last fall. This underperformance was, in part, driven by thefailed Ant Financial IPOand by increased scrutiny by Chinese regulators.\nThese factors have, however, not negatively impacted BABA's results. Instead, the company kept generating strong growth rates in recent quarters, which indicates that the recent share price underperformance was likely driven by weak sentiment and reluctance to invest in Chinese companies to a significant degree.\nBased on current earnings forecasts for this year, BABA shares are trading for just 21x this year's earnings. This seems like a very inexpensive valuation -- especially when one considers that the company is still growing at a rapid pace, with revenue growthranging from 36% to 81%during the last four quarters.\nJD.com Stock Price\nJD is, like BABA, a company that has seen its shares rise strongly over the last couple of years. It shares another similarity with its larger peer, however, as its shares have also underperformed in the recent past. JD's shares peaked in February and are down by 33% from the high today, dropping from $108 to $72 in a couple of months. As stated above, growing reluctance when it comes to investing in Chinese equities, coupled with some worries about a regulatory crackdown, play a role in JD's weak share price performance.\nThe company has, at the same time, seen its shares peak at a similar time to those of other high-growth, high-valuation stocks such as Tesla (TSLA). The share price underperformance in recent months may thus also be driven by a shift fromgrowth stocks to value stocks, and by the so-called reopening trade. At its current share price, JD.com is valued at around $110 billion, which is around one-fifth of Alibaba's valuation.\nUnlike BABA, JD is not trading at a discount to the broad market, as shares are currently valued at 45x this year's earnings per share, using current consensus estimates for adjusted EPS, which back out some one-time items. JD thus trades at a 100%+ premium compared to BABA, although it should be mentioned that other e-commerce players from different countries, such as US-based Amazon (AMZN), trade at similar or even higher valuations. Amazon trades at 59x this year's expected EPS, for example, while South America-focused MercadoLibre (MELI) trades at more than 2000x this year's expected net profits. JD thus is clearly way more expensive than BABA, but in comparison to international peers, its valuation is not at all outrageously high.\nAre JD.com and Alibaba Competitors?\nJD.com Inc. and Alibaba Group both operate in the e-commerce space, although their business models are not exactly the same. Alibaba is primarily a platform provider, where third-party sellers offer their merchandise while Alibaba receives a platform fee without handling packaging, logistics, etc. themselves. JD.com, on the other hand, sells, like Amazon, products themselves, which includes handling, transportation, packaging, etc. JD does offer a marketplace for third-party sellers as well, but this is not their primary business, which differentiates them from BABA to some degree. JD, due to handling logistics themselves, has invested heavily in tech in this area, which includes using drones and robots to deliver products to customers.\nBoth companies do, on top of operating e-commerce operations, also invest in a wide range of other projects and businesses. This includes, for example, BABA'sAlibaba Cloudand JD's autonomous vehicles venture.\nDespite the fact that the two companies do operate somewhat different business models, they are, of course, still competitors. Both serve the Chinese online shopping/e-commerce consumer market, and both seek to maximize their platforms' share of dollars that are spent online in the country. Luckily, the Chinese e-commerce market islarge and grows rapidly, which means that both companies can grow their top lines at the same time - there is enough room for both to grow profitably.\nWhat Is The Difference Between Alibaba And JD?\nThe aforementioned fact that both companies have somewhat different business models is one key difference between the two, and it has implications for the fundamentals these companies are operating with:\n\nData byYCharts\nSince BABA does operate asset-light, and without having to handle a lot of logistics, BABA generates significantly higher margins than JD, no matter whether one takes a look at gross margins, EBITDA margins, or operating margins. JD's margins look more like those of Amazon, i.e. significantly lower, which isn't a large surprise -- like Amazon, JD has high expenses for packaging, handling, storage, and so on.\nAnother big difference is the respective size of the two companies. BABA, being valued at 5x JD's market cap, and generating net profits that are about 10x higher than those of JD, is a significantly larger company. The two don't differ too much in terms of revenue generation, however, which can be explained by the different business models -- JD has high revenue per product, at a low margin, whereas BABA's business model that focuses on platform fees generates lower revenue per product at much higher margins.\nOverall, I'd rate BABA's business model more attractive. In a downturn, BABA's way higher margins will allow the company to stomach some margin pressure more easily, and its fee-based operations are lean and do result in low capital expenditure requirements. This, in turn, allows BABA to put a lot of free cash towards other business units, such as its cloud computing unit, while BABA has also been highly active in M&A as well.\nAlibaba Vs. JD.com: Which Is The Best Chinese Stock To Buy?\nSeveral things should be considered here, including fundamentals, growth, valuation, and risk factors. As stated above, BABA's business model allows for better fundamentals, and I believe that this will not change in the foreseeable future, as the much higher margins seem to be inherent for a company utilizing this platform approach.\nLooking at growth, we see that both have grown rapidly in recent years, including during pandemic-impacted 2020. Current analyst consensus estimates for the coming years look like this:\n\nData byYCharts\nAlibaba is forecasted to grow its revenue by 21% in 2022, and by 18% in 2023. JD.com, meanwhile, is forecasted to grow its top line by 21% in 2022, and by 19% in 2023 -- these are very similar growth rates. Long-term earnings per share growth estimates are not too far from each other, either, as BABA is seen growing its EPS by 27% a year, whereas JD is seen growing its EPS by 32% a year.\nIt makes, I believe, sense to expect that JD will grow its net profits faster, due to the fact that its margins have more upside potential, and that operating leverage should be more beneficial for a company like JD with its high fixed costs. Nevertheless, the growth outlook is relatively similar for these two companies. Since both operate in a similar market with their core businesses and will benefit from ongoing consumer spending growth and digitalization, it makes sense that there are no ultra-large discrepancies here.\nLooking at risk factors for both companies, we can say that both are heavily exposed to the Chinese economy, with all potential risks this entails. If economic growth slows down in China, both will be impacted. Similarly, if regulators crack down on e-commerce, both would be impacted. If a new strong competitor enters the Chinese e-commerce market, both companies could lose market share.\nSince Alibaba is a larger company, and since its founder Jack Ma seems to be more politically exposed compared to key execs at JD.com, one could argue that political/regulatory risks are more pronounced at Alibaba compared to JD.com. I personally do not see this as a very large risk factor, however, as it would not seem logical for Chinese politicians to hurt either of these two high-growth tech companies.\nTo sum this section up, I'd say that Alibaba trades at a massive discount compared to JD.com, which is the key argument here. Growth may be a little better at JD, while fundamentals are a little better at BABA. But these differences pale compared to the ultra-large difference in the valuations of both companies: BABA, at 21x this year's earnings, seems like a better pick than JD, at 45x this year's earnings.\nBABA's valuation is also significantly lower when we look at other metrics such as EV to EBITDA, which accounts for different debt levels. Here BABA is also way cheaper than JD, trading at 17x forward EBITDA (according to YCharts), compared to a 30x forward EBITDA valuation for its smaller peer.\nBABA is my favorite among these two right now, with valuation being the key factor. If JD were to trade at a similarly low valuation as BABA, the story might be a different one. But I don't think JD is a better pick than BABA when having an almost identical growth outlook while trading at a 100%+ premium. I welcome you to share your opinion on this question and your reasoning for preferring one of these over the other in the comment section!","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":56,"commentSize":52,"repostSize":0,"favoriteSize":3,"likeStatus":false,"favoriteStatus":false}}