Coupang (NYSE:CPNG) and PDD (NASDAQ:PDD) Critical Review

Coupang (NYSE:CPNG) and PDD (NASDAQ:PDD) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

83.7% of Coupang shares are owned by institutional investors. Comparatively, 39.8% of PDD shares are owned by institutional investors. 12.8% of Coupang shares are owned by insiders. Comparatively, 3.7% of PDD shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Coupang and PDD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coupang	1.13%	7.47%	1.98%
PDD	23.93%	30.57%	18.95%

Valuation & Earnings

This table compares Coupang and PDD”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coupang	$30.27 billion	1.93	$154.00 million	$0.20	160.45
PDD	$53.96 billion	3.45	$15.40 billion	$9.22	14.52

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

Risk & Volatility

Coupang has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, PDD has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Coupang and PDD, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coupang	1	3	6	1	2.64
PDD	0	10	5	0	2.33

Coupang presently has a consensus price target of $33.50, suggesting a potential upside of 4.40%. PDD has a consensus price target of $137.82, suggesting a potential upside of 2.97%. Given Coupang’s stronger consensus rating and higher possible upside, analysts plainly believe Coupang is more favorable than PDD.

Summary

Coupang beats PDD on 8 of the 15 factors compared between the two stocks.

About Coupang

Coupang, Inc., together with its subsidiaries owns and operates retail business through its mobile applications and Internet websites primarily in South Korea. The company operates through Product Commerce and Developing Offerings segments. It sells various products and services in the categories of home goods and décor products, apparel, beauty products, fresh food and groceries, sporting goods, electronics, and everyday consumables, as well as travel, and restaurant order and delivery services. In addition, the company offers Rocket Fresh, which offers fresh groceries; Coupang Eats, a restaurant ordering and delivery services; and Coupang Play, an online content streaming services, as well as advertising products. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in 2010 and is headquartered in Seattle, Washington.

About PDD

PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. The company was incorporated in 2015 and is based in Dublin, Ireland.