Analyzing Dingdong (Cayman) (NYSE:DDL) and Yunji (NASDAQ:YJ)

Yunji (NASDAQ:YJ) and Dingdong (Cayman) (NYSE:DDL) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Yunji and Dingdong (Cayman), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunji	1	0	0	0	1.00
Dingdong (Cayman)	1	1	0	0	1.50

Profitability

This table compares Yunji and Dingdong (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yunji	N/A	N/A	N/A
Dingdong (Cayman)	1.17%	31.21%	4.04%

Insider & Institutional Ownership

24.7% of Dingdong (Cayman) shares are held by institutional investors. 45.3% of Yunji shares are held by insiders. Comparatively, 29.8% of Dingdong (Cayman) 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.

Earnings & Valuation

This table compares Yunji and Dingdong (Cayman)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yunji	$57.22 million	0.14	-$16.86 million	($3.44)	-0.46
Dingdong (Cayman)	$3.21 billion	0.21	$40.43 million	$0.17	16.88

Dingdong (Cayman) has higher revenue and earnings than Yunji. Yunji is trading at a lower price-to-earnings ratio than Dingdong (Cayman), indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Yunji has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500. Comparatively, Dingdong (Cayman) has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Summary

Dingdong (Cayman) beats Yunji on 11 of the 12 factors compared between the two stocks.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, China.