Financial Contrast: PDD (NASDAQ:PDD) vs. Bed Bath & Beyond (NYSE:BBBY)

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

Earnings and Valuation

This table compares PDD and Bed Bath & Beyond”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDD	$409.62 billion	0.43	$15.40 billion	$9.22	13.67
Bed Bath & Beyond	$1.39 billion	0.46	-$258.80 million	($4.07)	-2.72

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

Profitability

This table compares PDD and Bed Bath & Beyond’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%
Bed Bath & Beyond	-17.86%	-78.27%	-31.94%

Risk and Volatility

PDD has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.77, indicating that its stock price is 177% more volatile than the S&P 500.

Insider & Institutional Ownership

39.8% of PDD shares are owned by institutional investors. Comparatively, 76.3% of Bed Bath & Beyond shares are owned by institutional investors. 3.7% of PDD shares are owned by insiders. Comparatively, 1.6% of Bed Bath & Beyond shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for PDD and Bed Bath & Beyond, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	0	8	5	1	2.50
Bed Bath & Beyond	2	4	2	0	2.00

PDD currently has a consensus price target of $137.82, suggesting a potential upside of 9.33%. Bed Bath & Beyond has a consensus price target of $8.86, suggesting a potential downside of 20.06%. Given PDD’s stronger consensus rating and higher probable upside, analysts plainly believe PDD is more favorable than Bed Bath & Beyond.

Summary

PDD beats Bed Bath & Beyond on 12 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 Bed Bath & Beyond

Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.