Seek Returns

BABA vs. PDD: A Head-to-Head Stock Comparison

Here’s a clear look at BABA and PDD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolBABAPDD
Company NameAlibaba Group Holding LimitedPDD Holdings Inc.
CountryHong KongIreland
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & RetailConsumer Discretionary Distribution & Retail
GICS IndustryBroadline RetailBroadline Retail
GICS Sub-IndustryBroadline RetailBroadline Retail
Market Capitalization329.39 billion USD140.63 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaqGS
Listing DateSeptember 19, 2014July 26, 2018
Security TypeADRADR

Both BABA and PDD are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

BABA’s market capitalization (329.39 billion USD) is substantially larger than PDD’s (140.63 billion USD), indicating a significant difference in their market valuations.

BABA and PDD are both American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies without directly engaging with overseas stock exchanges.

Historical Performance

This chart compares the performance of BABA and PDD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BABA
PDD
Loading price history…
BABA vs. PDD: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolBABAPDD
5-Day Price Return3.81%2.12%
13-Week Price Return-15.51%-6.11%
26-Week Price Return-18.12%-26.64%
52-Week Price Return9.55%-9.90%
Month-to-Date Return4.11%-1.08%
Year-to-Date Return-6.33%-12.87%
10-Day Avg. Volume8.89M5.71M
3-Month Avg. Volume11.46M7.71M
3-Month Volatility37.56%32.08%
Beta0.480.04

BABA’s beta of 0.48 points to significantly higher volatility compared to PDD (beta: 0.04), suggesting BABA has greater potential for both gains and losses relative to market movements.

Profitability

Return on Equity (TTM)

BABA

9.06%

Broadline Retail Industry
Max
52.86%
Q3
29.34%
Median
16.16%
Q1
8.94%
Min
-20.75%

BABA’s Return on Equity of 9.06% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

PDD

26.15%

Broadline Retail Industry
Max
52.86%
Q3
29.34%
Median
16.16%
Q1
8.94%
Min
-20.75%

PDD’s Return on Equity of 26.15% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

BABA vs. PDD: A comparison of their Return on Equity (TTM) against the Broadline Retail industry benchmark.

Net Profit Margin (TTM)

BABA

9.13%

Broadline Retail Industry
Max
23.01%
Q3
12.87%
Median
9.08%
Q1
4.39%
Min
-7.13%

BABA’s Net Profit Margin of 9.13% is aligned with the median group of its peers in the Broadline Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

PDD

22.66%

Broadline Retail Industry
Max
23.01%
Q3
12.87%
Median
9.08%
Q1
4.39%
Min
-7.13%

A Net Profit Margin of 22.66% places PDD in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.

BABA vs. PDD: A comparison of their Net Profit Margin (TTM) against the Broadline Retail industry benchmark.

Operating Profit Margin (TTM)

BABA

7.82%

Broadline Retail Industry
Max
26.71%
Q3
18.18%
Median
11.24%
Q1
7.67%
Min
0.27%

BABA’s Operating Profit Margin of 7.82% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

PDD

21.56%

Broadline Retail Industry
Max
26.71%
Q3
18.18%
Median
11.24%
Q1
7.67%
Min
0.27%

An Operating Profit Margin of 21.56% places PDD in the upper quartile for the Broadline Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

BABA vs. PDD: A comparison of their Operating Profit Margin (TTM) against the Broadline Retail industry benchmark.

Profitability at a Glance

SymbolBABAPDD
Return on Equity (TTM)9.06%26.15%
Return on Assets (TTM)5.01%16.71%
Net Profit Margin (TTM)9.13%22.66%
Operating Profit Margin (TTM)7.82%21.56%
Gross Profit Margin (TTM)40.75%56.28%

Financial Strength

Current Ratio (MRQ)

BABA

1.33

Broadline Retail Industry
Max
3.72
Q3
2.34
Median
1.48
Q1
1.18
Min
0.69

BABA’s Current Ratio of 1.33 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

PDD

2.43

Broadline Retail Industry
Max
3.72
Q3
2.34
Median
1.48
Q1
1.18
Min
0.69

PDD’s Current Ratio of 2.43 is in the upper quartile for the Broadline Retail industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

BABA vs. PDD: A comparison of their Current Ratio (MRQ) against the Broadline Retail industry benchmark.

Debt-to-Equity Ratio (MRQ)

BABA

0.25

Broadline Retail Industry
Max
2.11
Q3
1.36
Median
0.56
Q1
0.28
Min
0.00

Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.25 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

PDD

0.00

Broadline Retail Industry
Max
2.11
Q3
1.36
Median
0.56
Q1
0.28
Min
0.00

Falling into the lower quartile for the Broadline Retail industry, PDD’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

BABA vs. PDD: A comparison of their Debt-to-Equity Ratio (MRQ) against the Broadline Retail industry benchmark.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry
Max
37.34
Q3
21.16
Median
9.56
Q1
4.22
Min
-19.29

BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.

PDD

--

Broadline Retail Industry
Max
37.34
Q3
21.16
Median
9.56
Q1
4.22
Min
-19.29

Interest Coverage Ratio data for PDD is currently unavailable.

BABA vs. PDD: A comparison of their Interest Coverage Ratio (TTM) against the Broadline Retail industry benchmark.

Financial Strength at a Glance

SymbolBABAPDD
Current Ratio (MRQ)1.332.43
Quick Ratio (MRQ)0.832.42
Debt-to-Equity Ratio (MRQ)0.250.00
Interest Coverage Ratio (TTM)9.56--

Growth

Revenue Growth

BABA vs. PDD: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolBABAPDD
Revenue Growth (MRQ vs Prior YoY)1.67%12.03%
Revenue Growth (TTM vs Prior YoY)3.56%9.65%
3-Year Revenue CAGR5.31%49.00%
5-Year Revenue CAGR14.35%48.65%

EPS Growth

BABA vs. PDD: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolBABAPDD
EPS Growth (MRQ vs Prior YoY)-66.84%-15.81%
EPS Growth (TTM vs Prior YoY)-22.23%-13.17%
3-Year EPS CAGR33.08%44.45%
5-Year EPS CAGR-0.85%--

Dividend

Dividend Yield (TTM)

BABA

2.81%

Broadline Retail Industry
Max
5.86%
Q3
2.83%
Median
0.61%
Q1
0.00%
Min
0.00%

BABA’s Dividend Yield of 2.81% is consistent with its peers in the Broadline Retail industry, providing a dividend return that is standard for its sector.

PDD

0.00%

Broadline Retail Industry
Max
5.86%
Q3
2.83%
Median
0.61%
Q1
0.00%
Min
0.00%

PDD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

BABA vs. PDD: A comparison of their Dividend Yield (TTM) against the Broadline Retail industry benchmark.

Dividend Payout Ratio (TTM)

BABA

187.88%

Broadline Retail Industry
Max
120.88%
Q3
68.73%
Median
26.68%
Q1
0.00%
Min
0.00%

BABA’s Dividend Payout Ratio of 187.88% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

PDD

0.00%

Broadline Retail Industry
Max
120.88%
Q3
68.73%
Median
26.68%
Q1
0.00%
Min
0.00%

PDD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

BABA vs. PDD: A comparison of their Dividend Payout Ratio (TTM) against the Broadline Retail industry benchmark.

Dividend at a Glance

SymbolBABAPDD
Dividend Yield (TTM)2.81%0.00%
Dividend Payout Ratio (TTM)187.88%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

24.02

Broadline Retail Industry
Max
41.44
Q3
26.94
Median
20.83
Q1
10.05
Min
6.54

BABA’s P/E Ratio of 24.02 is within the middle range for the Broadline Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PDD

9.76

Broadline Retail Industry
Max
41.44
Q3
26.94
Median
20.83
Q1
10.05
Min
6.54

In the lower quartile for the Broadline Retail industry, PDD’s P/E Ratio of 9.76 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

BABA vs. PDD: A comparison of their Price-to-Earnings Ratio (TTM) against the Broadline Retail industry benchmark.

Price-to-Sales Ratio (TTM)

BABA

2.19

Broadline Retail Industry
Max
5.49
Q3
2.86
Median
1.89
Q1
0.90
Min
0.19

BABA’s P/S Ratio of 2.19 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

PDD

2.21

Broadline Retail Industry
Max
5.49
Q3
2.86
Median
1.89
Q1
0.90
Min
0.19

PDD’s P/S Ratio of 2.21 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BABA vs. PDD: A comparison of their Price-to-Sales Ratio (TTM) against the Broadline Retail industry benchmark.

Price-to-Book Ratio (MRQ)

BABA

2.32

Broadline Retail Industry
Max
9.90
Q3
5.46
Median
3.50
Q1
1.79
Min
0.79

BABA’s P/B Ratio of 2.32 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

PDD

2.60

Broadline Retail Industry
Max
9.90
Q3
5.46
Median
3.50
Q1
1.79
Min
0.79

PDD’s P/B Ratio of 2.60 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

BABA vs. PDD: A comparison of their Price-to-Book Ratio (MRQ) against the Broadline Retail industry benchmark.

Valuation at a Glance

SymbolBABAPDD
Price-to-Earnings Ratio (TTM)24.029.76
Price-to-Sales Ratio (TTM)2.192.21
Price-to-Book Ratio (MRQ)2.322.60
Price-to-Free Cash Flow Ratio (TTM)224.248.93