Comparing NextMart (OTCMKTS:NXMR) and PDD (NASDAQ:PDD)

PDD (NASDAQ:PDD) and NextMart (OTCMKTS:NXMR) are both multi-sector conglomerates companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PDD	28.92%	48.14%	26.86%
NextMart	N/A	N/A	N/A

Volatility and Risk

PDD has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, NextMart has a beta of -0.74, meaning that its stock price is 174% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for PDD and NextMart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	0	2	8	2	3.00
NextMart	0	0	0	0	N/A

PDD currently has a consensus target price of $177.78, indicating a potential upside of 39.81%. Given PDD’s higher possible upside, equities research analysts clearly believe PDD is more favorable than NextMart.

Institutional and Insider Ownership

29.1% of PDD shares are held by institutional investors. 3.7% of PDD shares are held by insiders. Comparatively, 56.4% of NextMart shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares PDD and NextMart”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDD	$34.88 billion	5.08	$8.45 billion	$7.55	17.07
NextMart	N/A	N/A	N/A	N/A	N/A

PDD has higher revenue and earnings than NextMart.

Summary

PDD beats NextMart on 9 of the 10 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 NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.