JD.com Vs. Sea Ltd: Which E-Commerce Stock Is A Better Buy?

A couple of months ago, SE entered a five-year strategic partnership with Visa Inc. (V) through whichit will create unique shopping experiences for Shopee users facilitated by V’s exclusive sponsorship platforms. Moreover, the partnership will also provide Micro, Small, and Medium Enterprises (MSMEs) with marketing and campaign support to drive awareness, traffic, and sales to online stores.

The company teamed up with Google in July to launch Google Ads with Shopee, which is a first-of-its-kind marketing solution for brands to drive sales online.

Recent Financial Results

As the Chinese economy has recovered rapidly from the deadly virus, JD’s total revenue has surged 29.2% year-over-year to $25.7 billion for the third quarter ended September 2020. The company’s net income increased 1277.4% year-over-year to $1.1 billion. For the 12 months ended September 2020, annual active customer accounts increased 32.1% year-over-year to 441.6 million. Non-GAAP diluted net income per ADS increased 64.4% year-over-year to $0.50.

SE’s top line climbed 98.7% year-over-year to $1.2 billion for the third quarter ended September 2020. Digital entertainment revenue increased nearly 73% year-over-year to $569 million. Gross profit increased 100.6% year-over-year to $407.6 million. And quarterly active users (QAUs) in the digital entertainment segment increased 78.3% year-over-year to 572.4 million.

Past and Expected Financial Performance

JD’s revenue grew at a CAGR of 27.8% over the past 3 years. The market expects the company’s revenue to increase 36.8% for the quarter ending December 2020, 36.9% this year, and 22.8% next year. JD’s EPS is expected to grow 78.6% for the quarter ending March 2021, and 43.5% next year.

SE’s revenue grew at a CAGR of 111.7% over the past 3 years. The market expects SE’s revenue to increase 108.5% for the quarter ending December 2020, 82.3% in the current year, and 43.8% next year. The company’s EPS is expected to grow 32.7% for the quarter ending March 2021, and 37.8% next year.

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