Head-To-Head Review: NextPlat (NASDAQ:NXPL) versus PDD (NASDAQ:PDD)

NextPlat (NASDAQ:NXPL) and PDD (NASDAQ:PDD) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

1.3% of NextPlat shares are held by institutional investors. Comparatively, 39.8% of PDD shares are held by institutional investors. 44.6% of NextPlat shares are held by company insiders. Comparatively, 3.7% of PDD shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares NextPlat and PDD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextPlat	-14.58%	-34.22%	-25.12%
PDD	24.46%	29.31%	18.47%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NextPlat and PDD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextPlat	1	0	0	0	1.00
PDD	0	11	4	0	2.27

PDD has a consensus target price of $139.87, indicating a potential upside of 34.84%. Given PDD’s stronger consensus rating and higher probable upside, analysts clearly believe PDD is more favorable than NextPlat.

Earnings and Valuation

This table compares NextPlat and PDD”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextPlat	$65.48 million	0.22	-$14.02 million	($0.30)	-1.85
PDD	$53.96 billion	2.68	$15.40 billion	$9.58	10.83

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

Summary

PDD beats NextPlat on 12 of the 13 factors compared between the two stocks.

About NextPlat

NextPlat Corp operates as a healthcare and e-commerce company in Europe, North America, South America, the Asia and Pacific, and Africa. The company operates full-service retail specialty services pharmacies that provides prescription pharmaceuticals prescription pharmaceuticals, third-party administration, risk and data management services, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, contracted pharmacy services, and health practice risk management to healthcare organizations and providers, as well as supplies prescription medications to long-term care facilities. It also offers COVID-19 related diagnostics and vaccinations, and medication adherence packaging; and value-added services, such as prior authorization assistance, same-day home-medication delivery, on site provider consultation services, primary care reporting and analytics, and customized packaging solutions, as well as acquires and leases an e-commerce platform to collaborate with businesses to optimize their ability to sell their goods online. In addition, it operates e-commerce websites, as well as third-party e-commerce storefronts that provides mobile satellite services solutions for satellite-enabled voice, data, personnel and asset tracking, machine-to-machine, and internet of things connectivity services; voice, data communications, internet of things (IoT), and machine-to-machine services; tracking and monitoring solutions and services; satellite communications products; and GPS enabled emergency locator distress beacons. Further, it offers satellite tracking devices used to monitor the location, movements, and history of anything that moves; SolarTrack, a compact, lightweight, IoT tracking device powered by the sun; and GTCTrack, a subscription-based mapping and tracking portal. The company was formerly known as Orbsat Corp. and changed its name to NextPlat Corp in January 2022. NextPlat Corp is based in Coconut Grove, Florida.

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.