Head-To-Head Review: PDD (NASDAQ:PDD) and PSQ (NYSE:PSQH)

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

Institutional & Insider Ownership

17.3% of PSQ shares are owned by institutional investors. Comparatively, 39.8% of PDD shares are owned by institutional investors. 32.1% of PSQ shares are owned by company insiders. Comparatively, 3.7% of PDD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for PSQ and PDD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PSQ	1	0	1	0	2.00
PDD	0	11	4	0	2.27

PSQ presently has a consensus target price of $3.50, indicating a potential upside of 354.55%. PDD has a consensus target price of $139.87, indicating a potential upside of 32.49%. Given PSQ’s higher possible upside, research analysts plainly believe PSQ is more favorable than PDD.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PSQ	-178.95%	-184.74%	-62.82%
PDD	24.46%	29.31%	18.47%

Valuation and Earnings

This table compares PSQ and PDD”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PSQ	$23.20 million	1.53	-$57.69 million	($1.20)	-0.64
PDD	$53.96 billion	2.72	$15.40 billion	$9.58	11.02

PDD has higher revenue and earnings than PSQ. PSQ 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 PSQ on 11 of the 13 factors compared between the two stocks.

About PSQ

PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, 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.