Pinduoduo (NASDAQ:PDD) and Uber Technologies (NYSE:UBER) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Institutional & Insider Ownership
70.6% of Uber Technologies shares are held by institutional investors. 8.7% of Uber Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Pinduoduo and Uber Technologies' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Pinduoduo | $4.33 billion | 51.40 | $-1,000,830,000.00 | ($0.88) | -206.22 |
Uber Technologies | $14.15 billion | 6.84 | $-8,506,000,000.00 | ($6.81) | -8.05 |
Pinduoduo has higher earnings, but lower revenue than Uber Technologies. Pinduoduo is trading at a lower price-to-earnings ratio than Uber Technologies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Pinduoduo has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Pinduoduo and Uber Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Pinduoduo | 0 | 6 | 14 | 0 | 2.70 |
Uber Technologies | 0 | 4 | 30 | 0 | 2.88 |
Pinduoduo presently has a consensus price target of $121.50, suggesting a potential downside of 34.85%. Uber Technologies has a consensus price target of $60.2105, suggesting a potential upside of 8.82%. Given Uber Technologies' stronger consensus rating and higher probable upside, analysts plainly believe Uber Technologies is more favorable than Pinduoduo.
Profitability
This table compares Pinduoduo and Uber Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Pinduoduo | -17.10% | -28.77% | -8.75% |
Uber Technologies | -53.12% | -43.27% | -17.01% |
Summary
Uber Technologies beats Pinduoduo on 7 of the 13 factors compared between the two stocks.