PDD (NASDAQ:PDD – Get Free Report) and JD.com (NASDAQ:JD – Get Free Report) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares PDD and JD.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PDD | 23.93% | 30.57% | 18.95% |
| JD.com | 3.06% | 13.60% | 6.06% |
Insider and Institutional Ownership
39.8% of PDD shares are held by institutional investors. Comparatively, 16.0% of JD.com shares are held by institutional investors. 3.7% of PDD shares are held by company insiders. Comparatively, 16.6% of JD.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PDD | 0 | 10 | 5 | 0 | 2.33 |
| JD.com | 1 | 4 | 9 | 2 | 2.75 |
PDD currently has a consensus price target of $137.82, indicating a potential downside of 0.23%. JD.com has a consensus price target of $41.92, indicating a potential upside of 33.47%. Given JD.com’s stronger consensus rating and higher possible upside, analysts clearly believe JD.com is more favorable than PDD.
Valuation and Earnings
This table compares PDD and JD.com”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PDD | $53.96 billion | 3.56 | $15.40 billion | $9.22 | 14.98 |
| JD.com | $158.76 billion | 0.28 | $5.67 billion | $3.56 | 8.82 |
PDD has higher earnings, but lower revenue than JD.com. JD.com is trading at a lower price-to-earnings ratio than PDD, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
PDD has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, JD.com has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Summary
PDD beats JD.com on 9 of the 15 factors compared between the two stocks.
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.
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.
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