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

Updated on August 25, 2025

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

Company Profile

PDD trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, RACE is a standard domestic listing.

Symbol	PDD	RACE
Company Name	PDD Holdings Inc.	Ferrari N.V.
Country	Ireland	Italy
GICS Sector	Consumer Discretionary	Consumer Discretionary
GICS Industry	Broadline Retail	Automobiles
Market Capitalization	167.52 billion USD	83.48 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	July 26, 2018	October 21, 2015
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of PDD and RACE 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.

PDD vs. RACE: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	PDD	RACE
5-Day Price Return	2.84%	6.15%
13-Week Price Return	-0.38%	-8.16%
26-Week Price Return	-2.91%	-12.25%
52-Week Price Return	-21.91%	-3.29%
Month-to-Date Return	4.01%	5.22%
Year-to-Date Return	21.66%	-1.70%
10-Day Avg. Volume	6.23M	0.34M
3-Month Avg. Volume	7.76M	0.32M
3-Month Volatility	38.70%	31.96%
Beta	0.39	1.01

Profitability

Return on Equity (TTM)

PDD

33.75%

Broadline Retail Industry

Max: 49.17%
Q3: 28.98%
Median: 19.22%
Q1: 10.86%
Min: -11.14%

In the upper quartile for the Broadline Retail industry, PDD’s Return on Equity of 33.75% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

RACE

45.61%

Automobiles Industry

Max: 25.70%
Q3: 12.88%
Median: 6.92%
Q1: 0.71%
Min: -15.89%

RACE’s Return on Equity of 45.61% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

PDD vs. RACE: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Net Profit Margin (TTM)

PDD

24.63%

Broadline Retail Industry

Max: 19.78%
Q3: 11.90%
Median: 8.63%
Q1: 5.21%
Min: 0.82%

PDD’s Net Profit Margin of 24.63% is exceptionally high, placing it well beyond the typical range for the Broadline Retail industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

RACE

22.91%

Automobiles Industry

Max: 9.92%
Q3: 5.78%
Median: 3.23%
Q1: 0.11%
Min: -5.31%

RACE’s Net Profit Margin of 22.91% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

PDD vs. RACE: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Operating Profit Margin (TTM)

PDD

24.47%

Broadline Retail Industry

Max: 27.23%
Q3: 15.96%
Median: 11.13%
Q1: 8.31%
Min: 1.77%

An Operating Profit Margin of 24.47% 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.

RACE

29.16%

Automobiles Industry

Max: 13.07%
Q3: 7.22%
Median: 5.29%
Q1: 0.43%
Min: -4.46%

RACE’s Operating Profit Margin of 29.16% is exceptionally high, placing it well above the typical range for the Automobiles industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

PDD vs. RACE: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Profitability at a Glance

Symbol	PDD	RACE
Return on Equity (TTM)	33.75%	45.61%
Return on Assets (TTM)	20.50%	16.76%
Net Profit Margin (TTM)	24.63%	22.91%
Operating Profit Margin (TTM)	24.47%	29.16%
Gross Profit Margin (TTM)	59.73%	51.20%

Financial Strength

Current Ratio (MRQ)

PDD

2.27

Broadline Retail Industry

Max: 3.54
Q3: 2.42
Median: 1.49
Q1: 1.22
Min: 0.67

PDD’s Current Ratio of 2.27 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

RACE

2.08

Automobiles Industry

Max: 2.19
Q3: 1.54
Median: 1.26
Q1: 1.09
Min: 0.48

RACE’s Current Ratio of 2.08 is in the upper quartile for the Automobiles industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

PDD vs. RACE: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Automobiles industry benchmarks.

Debt-to-Equity Ratio (MRQ)

PDD

0.02

Broadline Retail Industry

Max: 2.14
Q3: 1.34
Median: 0.63
Q1: 0.27
Min: 0.00

Falling into the lower quartile for the Broadline Retail industry, PDD’s Debt-to-Equity Ratio of 0.02 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

RACE

0.89

Automobiles Industry

Max: 2.34
Q3: 1.13
Median: 0.58
Q1: 0.28
Min: 0.06

RACE’s Debt-to-Equity Ratio of 0.89 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PDD vs. RACE: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Automobiles industry benchmarks.

Interest Coverage Ratio (TTM)

PDD

Broadline Retail Industry

Max: 37.34
Q3: 20.63
Median: 11.28
Q1: 4.22
Min: -19.29

Interest Coverage Ratio data for PDD is currently unavailable.

RACE

181.49

Automobiles Industry

Max: 77.87
Q3: 42.86
Median: 13.88
Q1: 2.13
Min: -49.07

With an Interest Coverage Ratio of 181.49, RACE demonstrates a superior capacity to service its debt, placing it well above the typical range for the Automobiles industry. This stems from either robust earnings or a conservative debt load.

PDD vs. RACE: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Financial Strength at a Glance

Symbol	PDD	RACE
Current Ratio (MRQ)	2.27	2.08
Quick Ratio (MRQ)	2.25	1.61
Debt-to-Equity Ratio (MRQ)	0.02	0.89
Interest Coverage Ratio (TTM)	--	181.49

Growth

Revenue Growth

PDD vs. RACE: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

PDD vs. RACE: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

PDD

0.00%

Broadline Retail Industry

Max: 5.46%
Q3: 2.38%
Median: 0.43%
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.

RACE

0.67%

Automobiles Industry

Max: 10.71%
Q3: 5.39%
Median: 3.14%
Q1: 0.00%
Min: 0.00%

RACE’s Dividend Yield of 0.67% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

PDD vs. RACE: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Dividend Payout Ratio (TTM)

PDD

0.00%

Broadline Retail Industry

Max: 131.17%
Q3: 63.48%
Median: 29.43%
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.

RACE

44.33%

Automobiles Industry

Max: 114.43%
Q3: 59.30%
Median: 37.15%
Q1: 16.40%
Min: 0.00%

RACE’s Dividend Payout Ratio of 44.33% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

PDD vs. RACE: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Dividend at a Glance

Symbol	PDD	RACE
Dividend Yield (TTM)	0.00%	0.67%
Dividend Payout Ratio (TTM)	0.00%	44.33%

Valuation

Price-to-Earnings Ratio (TTM)

PDD

11.97

Broadline Retail Industry

Max: 66.12
Q3: 35.17
Median: 16.29
Q1: 10.47
Min: 5.94

PDD’s P/E Ratio of 11.97 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.

RACE

48.99

Automobiles Industry

Max: 27.69
Q3: 19.99
Median: 9.85
Q1: 6.60
Min: 4.25

At 48.99, RACE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Automobiles industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

PDD vs. RACE: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

PDD

2.95

Broadline Retail Industry

Max: 5.40
Q3: 3.33
Median: 2.04
Q1: 0.80
Min: 0.16

PDD’s P/S Ratio of 2.95 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.

RACE

11.23

Automobiles Industry

Max: 1.52
Q3: 0.84
Median: 0.41
Q1: 0.23
Min: 0.08

With a P/S Ratio of 11.23, RACE trades at a valuation that eclipses even the highest in the Automobiles industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PDD vs. RACE: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Automobiles industry benchmarks.

Price-to-Book Ratio (MRQ)

PDD

3.58

Broadline Retail Industry

Max: 9.06
Q3: 5.22
Median: 3.48
Q1: 1.90
Min: 0.74

PDD’s P/B Ratio of 3.58 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.

RACE

22.78

Automobiles Industry

Max: 4.25
Q3: 2.00
Median: 0.87
Q1: 0.46
Min: 0.19

At 22.78, RACE’s P/B Ratio is at an extreme premium to the Automobiles industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

PDD vs. RACE: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Automobiles industry benchmarks.

Valuation at a Glance

Symbol	PDD	RACE
Price-to-Earnings Ratio (TTM)	11.97	48.99
Price-to-Sales Ratio (TTM)	2.95	11.23
Price-to-Book Ratio (MRQ)	3.58	22.78
Price-to-Free Cash Flow Ratio (TTM)	10.20	57.47