Analyzing Vipshop (NYSE:VIPS) & PDD (NASDAQ:PDD)

PDD (NASDAQ:PDD) and Vipshop (NYSE:VIPS) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDD	$450.78 billion	0.26	$13.99 billion	$9.08	8.97
Vipshop	$105.13 billion	0.06	$1.04 billion	$3.02	4.27

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PDD	20.73%	22.29%	14.68%
Vipshop	9.88%	12.63%	7.09%

Analyst Ratings

This is a summary of current ratings for PDD and Vipshop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	2	9	5	0	2.19
Vipshop	2	4	3	1	2.30

PDD presently has a consensus price target of $110.31, suggesting a potential upside of 35.43%. Vipshop has a consensus price target of $17.16, suggesting a potential upside of 33.15%. Given PDD’s higher possible upside, research analysts clearly believe PDD is more favorable than Vipshop.

Insider and Institutional Ownership

39.8% of PDD shares are owned by institutional investors. Comparatively, 48.8% of Vipshop shares are owned by institutional investors. 3.7% of PDD shares are owned by company insiders. Comparatively, 29.5% of Vipshop shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

PDD has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, Vipshop has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Summary

PDD beats Vipshop on 10 of the 15 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 Vipshop

Vipshop Holdings Limited operates online platforms in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers womenswear, menswear, sportswear and sporting goods, shoes and bags, accessories, baby and children products, skincare and cosmetics, home goods and other lifestyle products, and supermarket products. It also provides internet finance services, including consumer and supplier financing. In addition, the company engages in warehousing, retail business, product procurement, and software development and information technology support activities. The company provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.