Reviewing JD.com (NASDAQ:JD) & LightInTheBox (NYSE:LITB)

LightInTheBox (NYSE:LITB) and JD.com (NASDAQ:JD) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for LightInTheBox and JD.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightInTheBox	1	0	0	0	1.00
JD.com	1	4	9	0	2.57

JD.com has a consensus target price of $36.25, indicating a potential upside of 25.28%. Given JD.com’s stronger consensus rating and higher possible upside, analysts plainly believe JD.com is more favorable than LightInTheBox.

Institutional and Insider Ownership

56.8% of LightInTheBox shares are owned by institutional investors. Comparatively, 16.0% of JD.com shares are owned by institutional investors. 62.2% of LightInTheBox shares are owned by insiders. Comparatively, 16.6% of JD.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

LightInTheBox has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, JD.com has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Profitability

This table compares LightInTheBox and JD.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightInTheBox	4.07%	-150.84%	13.92%
JD.com	1.04%	5.90%	2.48%

Valuation & Earnings

This table compares LightInTheBox and JD.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightInTheBox	$224.32 million	0.25	$8.28 million	$0.50	6.18
JD.com	$187.20 billion	0.19	$2.81 billion	$1.28	22.61

JD.com has higher revenue and earnings than LightInTheBox. LightInTheBox is trading at a lower price-to-earnings ratio than JD.com, indicating that it is currently the more affordable of the two stocks.

Summary

JD.com beats LightInTheBox on 9 of the 14 factors compared between the two stocks.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.

About JD.com

JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.