Analyzing Pinduoduo (PDD) and Its Competitors

Pinduoduo (NASDAQ: PDD) is one of 127 publicly-traded companies in the “Business services, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Pinduoduo to similar companies based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, risk, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Pinduoduo -78.51% -114.98% -32.83%
Pinduoduo Competitors 3.16% 1.10% 1.35%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Pinduoduo $1.91 billion -$1.49 billion -12.59
Pinduoduo Competitors $2.72 billion $429.76 million 12.58

Pinduoduo’s rivals have higher revenue and earnings than Pinduoduo. Pinduoduo 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.

Insider & Institutional Ownership

6.8% of Pinduoduo shares are owned by institutional investors. Comparatively, 62.8% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 14.6% of shares of all “Business services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Pinduoduo and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinduoduo 0 1 4 0 2.80
Pinduoduo Competitors 1044 4584 8253 366 2.56

Pinduoduo presently has a consensus target price of $30.98, suggesting a potential upside of 23.06%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 12.11%. Given Pinduoduo’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pinduoduo is more favorable than its rivals.

Summary

Pinduoduo rivals beat Pinduoduo on 9 of the 12 factors compared.

About Pinduoduo

Pinduoduo Inc. operates an e-commerce platform in the People's Republic of China. It also operates Pinduoduo, a mobile platform that offers a range of priced merchandise. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc. in July 2018. Pinduoduo Inc. was founded in 2015 and is based in Shanghai, the People's Republic of China.

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