Dingdong (Cayman) (NYSE:DDL) versus Sysco (NYSE:SYY) Head-To-Head Analysis

Sysco (NYSE:SYY) and Dingdong (Cayman) (NYSE:DDL) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

83.4% of Sysco shares are owned by institutional investors. Comparatively, 24.7% of Dingdong (Cayman) shares are owned by institutional investors. 0.6% of Sysco shares are owned by company insiders. Comparatively, 29.8% of Dingdong (Cayman) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sysco and Dingdong (Cayman), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sysco	1	6	9	0	2.50
Dingdong (Cayman)	0	2	0	0	2.00

Sysco currently has a consensus target price of $89.50, suggesting a potential upside of 9.57%. Given Sysco’s stronger consensus rating and higher probable upside, analysts clearly believe Sysco is more favorable than Dingdong (Cayman).

Earnings & Valuation

This table compares Sysco and Dingdong (Cayman)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sysco	$84.55 billion	0.46	$1.76 billion	$3.66	22.32
Dingdong (Cayman)	$3.42 billion	0.15	$31.70 million	$0.36	5.96

Sysco has higher revenue and earnings than Dingdong (Cayman). Dingdong (Cayman) is trading at a lower price-to-earnings ratio than Sysco, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Sysco has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Dingdong (Cayman) has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Profitability

This table compares Sysco and Dingdong (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sysco	2.08%	95.05%	8.00%
Dingdong (Cayman)	2.19%	47.37%	7.61%

Summary

Sysco beats Dingdong (Cayman) on 12 of the 14 factors compared between the two stocks.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, China.