Mercari (OTCMKTS:MCARY – Get Free Report) and Dada Nexus (NASDAQ:DADA – Get Free Report) are both consumer cyclical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Insider and Institutional Ownership
59.3% of Dada Nexus shares are owned by institutional investors. 8.5% of Dada Nexus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Mercari and Dada Nexus’ gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Mercari | N/A | N/A | N/A | N/A | N/A |
Dada Nexus | $10.18 billion | 0.03 | -$275.71 million | ($1.28) | -0.86 |
Analyst Recommendations
This is a breakdown of current ratings for Mercari and Dada Nexus, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Mercari | 0 | 0 | 0 | 0 | N/A |
Dada Nexus | 0 | 6 | 2 | 0 | 2.25 |
Dada Nexus has a consensus target price of $3.35, suggesting a potential upside of 204.94%. Given Dada Nexus’ higher possible upside, analysts plainly believe Dada Nexus is more favorable than Mercari.
Profitability
This table compares Mercari and Dada Nexus’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Mercari | N/A | N/A | N/A |
Dada Nexus | -19.81% | -10.94% | -8.29% |
Summary
Dada Nexus beats Mercari on 5 of the 8 factors compared between the two stocks.
About Mercari
Mercari, Inc. plans, develops, and operates Mercari marketplace applications in Japan and the United States. The company was incorporated in 2013 and is based in Tokyo, Japan.
About Dada Nexus
Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People’s Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platforms for consumers, retailers, and brand owners. The company was incorporated in 2014 and is headquartered in Shanghai, China.
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