PDD (PDD) and Its Competitors Head-To-Head Comparison

PDD (NASDAQ:PDD) is one of 142 publicly-traded companies in the “Broadline Retail” industry, but how does it contrast to its peers? We will compare PDD to similar companies based on the strength of its profitability, dividends, risk, valuation, earnings, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for PDD and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	1	10	5	0	2.25
PDD Competitors	1410	5415	10899	311	2.56

PDD currently has a consensus price target of $107.31, suggesting a potential upside of 35.15%. As a group, “Broadline Retail” companies have a potential upside of 19.80%. Given PDD’s higher probable upside, equities research analysts clearly believe PDD is more favorable than its peers.

Volatility & Risk

PDD has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, PDD’s peers have a beta of 1.74, suggesting that their average stock price is 74% more volatile than the S&P 500.

Profitability

This table compares PDD and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDD	20.73%	22.29%	14.68%
PDD Competitors	-2.83%	-22.79%	-2.11%

Valuation & Earnings

This table compares PDD and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PDD	$450.78 billion	$13.99 billion	8.74
PDD Competitors	$54.94 billion	$1.71 billion	15.09

PDD has higher revenue and earnings than its peers. PDD is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

39.8% of PDD shares are held by institutional investors. Comparatively, 44.5% of shares of all “Broadline Retail” companies are held by institutional investors. 3.7% of PDD shares are held by company insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

PDD peers beat PDD on 7 of the 13 factors compared.

PDD Company Profile

PDD Holdings Inc. operates e-commerce platforms that connect consumers with merchants and other suppliers. Its businesses include Pinduoduo, a marketplace focused on China, and Temu, an international online marketplace. Pinduoduo uses interactive shopping features, including group buying, and offers products across categories such as groceries, apparel, home goods and electronics. The platform has also emphasized agricultural products, connecting farmers with consumers and other buyers. Temu serves customers in multiple markets outside China and offers a wide range of merchandise from suppliers and brands.