Comparing Dada Nexus (NASDAQ:DADA) & Mercari (OTCMKTS:MCARY)

Mercari (OTCMKTS:MCARY) and Dada Nexus (NASDAQ:DADA) 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

Mercari has higher earnings, but lower revenue than Dada Nexus.

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.