SpendSmart Networks (OTCMKTS:SSPC) and JD.Com (NASDAQ:JD) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares SpendSmart Networks and JD.Com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SpendSmart Networks N/A N/A N/A
JD.Com -0.12% -0.94% -0.27%

Institutional and Insider Ownership

48.7% of JD.Com shares are held by institutional investors. 39.5% of SpendSmart Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares SpendSmart Networks and JD.Com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SpendSmart Networks $5.79 million 0.03 -$3.32 million N/A N/A
JD.Com $55.69 billion 0.42 -$23.39 million $0.01 1,958.50

SpendSmart Networks has higher earnings, but lower revenue than JD.Com.

Volatility & Risk

SpendSmart Networks has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, JD.Com has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for SpendSmart Networks and JD.Com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SpendSmart Networks 0 0 0 0 N/A
JD.Com 1 8 7 0 2.38

JD.Com has a consensus target price of $34.87, suggesting a potential upside of 78.03%. Given JD.Com’s higher probable upside, analysts clearly believe JD.Com is more favorable than SpendSmart Networks.

Summary

JD.Com beats SpendSmart Networks on 6 of the 11 factors compared between the two stocks.

About SpendSmart Networks

SpendSmart Networks, Inc., doing business as SMS Masterminds, provides proprietary loyalty systems, and a suite of digital engagement and marketing services to merchants. It delivers and manages loyalty platforms, such as merchant funded rewards, loyalty rewards tablets/kiosks, and proprietary rewards management systems; and mobile marketing technology, including text and email messaging, customer analytics and propensity marketing, patent pending automated engagement engine, and Text2Win sweepstakes features. The company also delivers and manages enterprise level loyalty and mobile marketing consulting comprising monthly hands on reviews by its Certified Masterminds, campaign creation and optimization, and localized support. In addition, it delivers and manages proprietary mobile-responsive Website building platform, which includes software allowing licensees and merchants to create and administer their Websites, audits of existing merchant Websites, and integration of social media streams and consumer reviews into Websites. The company was formerly known as The SpendSmart Payments Company, Inc. and changed its name to SpendSmart Networks, Inc. in June 2014. SpendSmart Networks, Inc. was founded in 2007 and is headquartered in San Luis Obispo, California.

About JD.Com

JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Mall and New Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women's shoes, bags, jewelry, and luxury goods; men's shoes, sports gears, and fitness equipment; automobiles and accessories; mother and childcare products, toys, and instruments; and food, beverage, and fresh produce. It also provides gifts, flowers, and plants; nutritional supplements; books, e-books, music, movie, and other media products; and virtual goods, such as online travel agency, attraction tickets, and prepaid phone and game cards, as well as consumer electronic products. In addition, the company offers an online marketplace for third-party sellers to sell products to customers; and transaction processing and billing, value-added fulfillment, and other services. Further, it provides online marketing services for suppliers, merchants, and other partners; logistics services for various industries; consumer financing services to individual customers; and supply chain financing services to suppliers and merchants. Additionally, the company offers online-to-offline solutions for customers and offline retailers, as well as online and in-person payment options and customer services. JD.com, Inc. offers its products through its Website jd.com and mobile apps, as well as directly to customers. As of December 31, 2017, JD.com, Inc. operated 7 fulfillment centers and 486 warehouses in 78 cities covering various counties and districts. The company has strategic cooperation agreement with Tencent Holdings Limited and Vipshop Holdings Ltd. JD.com, Inc. is headquartered in Beijing, China.

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