QuinStreet (NASDAQ:QNST) and Pinduoduo (NASDAQ:PDD) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for QuinStreet and Pinduoduo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QuinStreet 0 0 5 0 3.00
Pinduoduo 0 1 3 0 2.75

QuinStreet currently has a consensus price target of $17.55, suggesting a potential downside of 10.18%. Pinduoduo has a consensus price target of $28.97, suggesting a potential downside of 5.62%. Given Pinduoduo’s higher probable upside, analysts clearly believe Pinduoduo is more favorable than QuinStreet.

Profitability

This table compares QuinStreet and Pinduoduo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QuinStreet 4.60% 14.14% 9.49%
Pinduoduo N/A N/A N/A

Insider and Institutional Ownership

83.4% of QuinStreet shares are owned by institutional investors. Comparatively, 6.2% of Pinduoduo shares are owned by institutional investors. 12.5% of QuinStreet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares QuinStreet and Pinduoduo’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QuinStreet $404.36 million 2.38 $15.93 million $0.32 61.06
Pinduoduo $278.04 million 122.28 -$83.71 million N/A N/A

QuinStreet has higher revenue and earnings than Pinduoduo.

Summary

QuinStreet beats Pinduoduo on 9 of the 11 factors compared between the two stocks.

About QuinStreet

QuinStreet, Inc., an Internet performance marketing company, provides customer acquisition services for its clients in the United States and internationally. It offers online marketing services to its clients in the form of qualified leads, inquiries, clicks, calls, applications, customers, display advertisements, or impressions through its Websites or third-party publishers. The company provides its services in various verticals, such as financial services, education, business-to-business technology, and home services. QuinStreet, Inc. was founded in 1999 and is headquartered in Foster City, California.

About Pinduoduo

Pinduoduo Inc. operates an e-commerce platform in the People's Republic of China. It also operates Pinduoduo, a mobile platform that offers a range of priced merchandise. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc. in July 2018. Pinduoduo Inc. was founded in 2015 and is based in Shanghai, the People's Republic of China.

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