Analyzing PDD (NASDAQ:PDD) and Seven and I (OTCMKTS:SVNDY)

PDD (NASDAQ:PDD) and Seven and I (OTCMKTS:SVNDY) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for PDD and Seven and I, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDD	1	9	6	0	2.31
Seven and I	0	2	0	0	2.00

PDD presently has a consensus target price of $110.31, suggesting a potential upside of 36.55%. Given PDD’s stronger consensus rating and higher probable upside, analysts plainly believe PDD is more favorable than Seven and I.

Volatility and Risk

PDD has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Earnings & Valuation

This table compares PDD and Seven and I”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDD	$61.75 billion	1.86	$13.99 billion	$9.08	8.90
Seven and I	$69.63 billion	0.45	$1.96 billion	$0.80	16.90

PDD has higher earnings, but lower revenue than Seven and I. PDD is trading at a lower price-to-earnings ratio than Seven and I, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

39.8% of PDD shares are owned by institutional investors. Comparatively, 0.0% of Seven and I shares are owned by institutional investors. 3.7% of PDD shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PDD	20.73%	22.29%	14.68%
Seven and I	2.89%	8.20%	3.23%

Summary

PDD beats Seven and I on 11 of the 14 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 Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.