Critical Contrast: JD.com (NASDAQ:JD) & PDD (NASDAQ:PDD)

JD.com (NASDAQ:JD) and PDD (NASDAQ:PDD) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings & Valuation

This table compares JD.com and PDD”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD.com	$158.76 billion	0.28	$5.67 billion	$3.56	8.82
PDD	$53.96 billion	3.56	$15.40 billion	$9.22	14.98

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

Risk and Volatility

JD.com has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, PDD has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Institutional and Insider Ownership

16.0% of JD.com shares are owned by institutional investors. Comparatively, 39.8% of PDD shares are owned by institutional investors. 16.6% of JD.com shares are owned by company insiders. Comparatively, 3.7% of PDD shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JD.com	3.06%	13.60%	6.06%
PDD	23.93%	30.57%	18.95%

Analyst Recommendations

This is a breakdown of recent recommendations for JD.com and PDD, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD.com	1	4	9	2	2.75
PDD	0	10	5	0	2.33

JD.com presently has a consensus target price of $41.92, indicating a potential upside of 33.47%. PDD has a consensus target price of $137.82, indicating a potential downside of 0.23%. Given JD.com’s stronger consensus rating and higher probable upside, equities research analysts clearly believe JD.com is more favorable than PDD.

Summary

PDD beats JD.com on 9 of the 15 factors compared between the two stocks.

About JD.com

JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.

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.