Analyzing Dingdong (Cayman) (NYSE:DDL) and Newegg Commerce (NASDAQ:NEGG)

Dingdong (Cayman) (NYSE:DDL) and Newegg Commerce (NASDAQ:NEGG) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

24.7% of Dingdong (Cayman) shares are owned by institutional investors. Comparatively, 0.5% of Newegg Commerce shares are owned by institutional investors. 29.8% of Dingdong (Cayman) shares are owned by company insiders. Comparatively, 22.9% of Newegg Commerce shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Dingdong (Cayman) and Newegg Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dingdong (Cayman)	0	2	0	0	2.00
Newegg Commerce	1	0	0	0	1.00

Risk and Volatility

Dingdong (Cayman) has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Newegg Commerce has a beta of 3.4, indicating that its share price is 240% more volatile than the S&P 500.

Earnings & Valuation

This table compares Dingdong (Cayman) and Newegg Commerce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dingdong (Cayman)	$3.42 billion	0.14	$31.70 million	$0.24	8.27
Newegg Commerce	$1.44 million	416.99	-$4.88 million	N/A	N/A

Dingdong (Cayman) has higher revenue and earnings than Newegg Commerce.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dingdong (Cayman)	1.54%	36.51%	5.54%
Newegg Commerce	N/A	N/A	N/A

Summary

Dingdong (Cayman) beats Newegg Commerce on 8 of the 10 factors compared between the two stocks.

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.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.