Points International (PCOM) versus JD.com (JD) Critical Review
Points International (NASDAQ: PCOM) and JD.com (NASDAQ:JD) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitabiliy, earnings, institutional ownership, valuation and dividends.
Volatility & Risk
Points International has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, JD.com has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.
This table compares Points International and JD.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
38.0% of Points International shares are held by institutional investors. Comparatively, 49.3% of JD.com shares are held by institutional investors. 16.6% of JD.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Points International and JD.com, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Points International currently has a consensus price target of $13.50, suggesting a potential upside of 66.46%. JD.com has a consensus price target of $36.41, suggesting a potential downside of 21.53%. Given Points International’s stronger consensus rating and higher probable upside, research analysts plainly believe Points International is more favorable than JD.com.
Earnings & Valuation
This table compares Points International and JD.com’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Points International||$330.94 million||0.36||$9.54 million||($0.10)||-81.10|
|JD.com||$41.77 billion||1.58||$486.10 million||($0.29)||-159.99|
JD.com has higher revenue and earnings than Points International. JD.com is trading at a lower price-to-earnings ratio than Points International, indicating that it is currently the more affordable of the two stocks.
JD.com beats Points International on 7 of the 13 factors compared between the two stocks.
About Points International
Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.
JD.com, Inc. is an online direct sales company. The Company engages in the sale of electronics and home appliance products and general merchandise products (including audio, video products and books) sourced from manufacturers, distributors and publishers in China on the Internet through its Website, www.jd.com. It also offers an online marketplace that enables third-party sellers to sell their products to customers on the Company’s Website. The Company operates through the provision of a single class of services for accelerating and improving the delivery of its products over the Internet. The Company also offers online and in-person payment options and customer services. The Company operates approximately 210 warehouses with an aggregate gross floor area of approximately four million square meters in over 50 cities. It operates over 5,370 delivery stations and pickup stations in approximately 2,350 counties and districts across China.
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