Head-To-Head Comparison: Dada Nexus (NASDAQ:DADA) & Tiga Acquisition (NYSE:TINV)

Tiga Acquisition (NYSE:TINV) and Dada Nexus (NASDAQ:DADA) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Insider & Institutional Ownership

54.5% of Tiga Acquisition shares are held by institutional investors. Comparatively, 59.3% of Dada Nexus shares are held by institutional investors. 4.5% of Tiga Acquisition shares are held by insiders. Comparatively, 8.5% of Dada Nexus shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Tiga Acquisition and Dada Nexus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tiga Acquisition	N/A	N/A	$23.19 million	N/A	N/A
Dada Nexus	$10.18 billion	0.04	-$275.71 million	($1.28)	-1.25

Tiga Acquisition has higher earnings, but lower revenue than Dada Nexus.

Analyst Ratings

This is a breakdown of current ratings and target prices for Tiga Acquisition and Dada Nexus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tiga Acquisition	0	0	0	0	N/A
Dada Nexus	0	5	2	0	2.29

Dada Nexus has a consensus price target of $3.12, suggesting a potential upside of 94.79%. Given Dada Nexus’ higher possible upside, analysts clearly believe Dada Nexus is more favorable than Tiga Acquisition.

Profitability

This table compares Tiga Acquisition and Dada Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tiga Acquisition	N/A	-36.88%	-2.91%
Dada Nexus	-19.81%	-10.94%	-8.29%

Risk and Volatility

Tiga Acquisition has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Dada Nexus has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Summary

Dada Nexus beats Tiga Acquisition on 7 of the 10 factors compared between the two stocks.

About Tiga Acquisition

Tiga Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company was incorporated in 2020 and is headquartered in Singapore.

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.