Head to Head Contrast: Newegg Commerce (NASDAQ:NEGG) & PDD (NASDAQ:PDD)

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

Insider and Institutional Ownership

39.8% of PDD shares are owned by institutional investors. Comparatively, 0.5% of Newegg Commerce shares are owned by institutional investors. 3.7% of PDD 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PDD	23.01%	26.55%	16.99%
Newegg Commerce	N/A	N/A	N/A

Valuation & Earnings

This table compares PDD and Newegg Commerce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDD	$61.75 billion	2.27	$14.21 billion	$9.40	10.73
Newegg Commerce	$1.24 million	1,166.66	-$43.33 million	N/A	N/A

PDD has higher revenue and earnings than Newegg Commerce.

Risk and Volatility

PDD has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Newegg Commerce has a beta of 4.17, indicating that its stock price is 317% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for PDD and Newegg Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	0	10	5	0	2.33
Newegg Commerce	1	0	0	0	1.00

PDD currently has a consensus price target of $140.27, indicating a potential upside of 39.06%. Given PDD’s stronger consensus rating and higher probable upside, analysts clearly believe PDD is more favorable than Newegg Commerce.

Summary

PDD beats Newegg Commerce on 9 of the 12 factors compared between the two stocks.

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.

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.