Head to Head Comparison: NextMart (OTCMKTS:NXMR) & PDD (NASDAQ:PDD)

NextMart (OTCMKTS:NXMR) and PDD (NASDAQ:PDD) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

29.1% of PDD shares are held by institutional investors. 56.4% of NextMart shares are held by company insiders. Comparatively, 3.7% of PDD shares are held by company 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.

Analyst Recommendations

This is a summary of current ratings and target prices for NextMart and PDD, as reported by MarketBeat.com.

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

PDD has a consensus target price of $177.78, suggesting a potential upside of 31.87%. Given PDD’s higher possible upside, analysts plainly believe PDD is more favorable than NextMart.

Volatility and Risk

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

Profitability

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

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

Earnings & Valuation

This table compares NextMart and PDD”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextMart	N/A	N/A	N/A	N/A	N/A
PDD	$34.88 billion	5.32	$8.45 billion	$7.55	17.86

PDD has higher revenue and earnings than NextMart.

Summary

PDD beats NextMart on 9 of the 10 factors compared between the two stocks.

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.

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.