Reviewing D-MARKET Electronic Services & Trading (NASDAQ:HEPS) & PDD (NASDAQ:PDD)

D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and PDD (NASDAQ:PDD) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Insider & Institutional Ownership

40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. Comparatively, 39.8% of PDD shares are held by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are held by company insiders. Comparatively, 3.7% of PDD shares are held 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 D-MARKET Electronic Services & Trading and PDD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D-MARKET Electronic Services & Trading	-5.42%	-113.69%	-10.63%
PDD	24.46%	29.31%	18.47%

Analyst Ratings

This is a summary of current ratings and target prices for D-MARKET Electronic Services & Trading and PDD, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-MARKET Electronic Services & Trading	1	2	0	0	1.67
PDD	0	11	4	0	2.27

D-MARKET Electronic Services & Trading currently has a consensus price target of $3.07, indicating a potential upside of 11.64%. PDD has a consensus price target of $139.87, indicating a potential upside of 30.86%. Given PDD’s stronger consensus rating and higher probable upside, analysts clearly believe PDD is more favorable than D-MARKET Electronic Services & Trading.

Valuation & Earnings

This table compares D-MARKET Electronic Services & Trading and PDD”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-MARKET Electronic Services & Trading	$1.74 billion	0.56	-$48.95 million	($0.25)	-11.00
PDD	$53.96 billion	2.76	$15.40 billion	$9.58	11.16

PDD has higher revenue and earnings than D-MARKET Electronic Services & Trading. D-MARKET Electronic Services & Trading is trading at a lower price-to-earnings ratio than PDD, indicating that it is currently the more affordable of the two stocks.

Summary

PDD beats D-MARKET Electronic Services & Trading on 11 of the 13 factors compared between the two stocks.

About D-MARKET Electronic Services & Trading

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.

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.