Critical Survey: Dada Nexus (NASDAQ:DADA) and Mercari (OTCMKTS:MCARY)

Dada Nexus (NASDAQ:DADA) and Mercari (OTCMKTS:MCARY) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

59.3% of Dada Nexus shares are owned by institutional investors. 8.5% of Dada Nexus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Dada Nexus and Mercari, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dada Nexus	0	6	2	0	2.25
Mercari	0	0	0	0	N/A

Dada Nexus presently has a consensus price target of $3.35, suggesting a potential upside of 207.73%. Given Dada Nexus’ higher probable upside, equities analysts plainly believe Dada Nexus is more favorable than Mercari.

Profitability

This table compares Dada Nexus and Mercari’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dada Nexus	-19.81%	-10.94%	-8.29%
Mercari	N/A	N/A	N/A

Valuation and Earnings

This table compares Dada Nexus and Mercari’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dada Nexus	$10.18 billion	0.03	-$275.71 million	($1.28)	-0.85
Mercari	N/A	N/A	N/A	N/A	N/A

Mercari has lower revenue, but higher earnings than Dada Nexus.

Summary

Dada Nexus beats Mercari on 5 of the 8 factors compared between the two stocks.

About Dada Nexus

Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People’s Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platforms for consumers, retailers, and brand owners. The company was incorporated in 2014 and is headquartered in Shanghai, China.

About Mercari

Mercari, Inc. plans, develops, and operates Mercari marketplace applications in Japan and the United States. The company was incorporated in 2013 and is based in Tokyo, Japan.