Head-To-Head Analysis: PDD (PDD) versus Its Peers

PDD (NASDAQ:PDD) is one of 142 public companies in the “Broadline Retail” industry, but how does it compare to its rivals? We will compare PDD to similar businesses based on the strength of its dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

39.8% of PDD shares are held by institutional investors. Comparatively, 44.6% of shares of all “Broadline Retail” companies are held by institutional investors. 3.7% of PDD shares are held by insiders. Comparatively, 23.6% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

PDD has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, PDD’s rivals have a beta of 1.75, meaning that their average share price is 75% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PDD and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	1	9	6	0	2.31
PDD Competitors	1406	5409	10895	311	2.56

PDD currently has a consensus price target of $110.31, suggesting a potential upside of 32.85%. As a group, “Broadline Retail” companies have a potential upside of 21.50%. Given PDD’s higher possible upside, equities research analysts clearly believe PDD is more favorable than its rivals.

Valuation & Earnings

This table compares PDD and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PDD	$61.75 billion	$13.99 billion	9.14
PDD Competitors	$24.86 billion	$1.71 billion	15.19

PDD has higher revenue and earnings than its rivals. PDD is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PDD and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDD	20.73%	22.29%	14.68%
PDD Competitors	-2.87%	-29.30%	-2.12%

Summary

PDD rivals beat PDD on 7 of the 13 factors compared.

PDD Company Profile

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.