Alibaba Group Holding Limited (BABA) vs PDD Holdings Inc. Sponsored ADR (PDD)

Alibaba Group Holding Limited and PDD Holdings Inc. Sponsored ADR are both Internet Retail companies. Alibaba Group Holding Limited is the larger, with a market value of $276.5B against $117.3B — 2.4× the size. PDD Holdings Inc. Sponsored ADR trades at the lower P/E: 8.4× against 24.0×. PDD Holdings Inc. Sponsored ADR grew revenue faster over the last twelve months: 17.3% against 10.9%. PDD Holdings Inc. Sponsored ADR has the higher net margin (20.4% vs 7.09%) and the lower return on invested capital (0.00% vs 2.99%). Across the 21 metrics below, PDD Holdings Inc. Sponsored ADR leads on 18 and Alibaba Group Holding Limited on 3.

Valuation

Metric BABA PDD Internet Retail median
P/E 23.98 8.44 24.35
P/S 1.66 1.73 0.69
P/B 1.56 1.73 1.66
Price to free cash flow n/m 7.19 15.23
EV/EBITDA 34.59 2.55 19.14
EV/Sales 1.50 0.56 0.75
Earnings yield 4.17% 11.84% (0.17%)
Free cash flow yield (10.55%) 13.91% 0.00%

Profitability

Metric BABA PDD Internet Retail median
Gross margin 38.26% 56.33% 43.51%
Operating margin 4.34% 21.85% 0.08%
Net margin 7.09% 20.44% 0.56%
Free cash flow margin 7.52% 24.71% 0.00%
Return on equity 6.93% 23.16% 0.00%
Return on assets 3.98% 15.25% 0.00%
Return on invested capital 2.99% 0.00% 0.00%

Growth

Metric BABA PDD Internet Retail median
Revenue growth (TTM) 10.89% 17.30% 10.80%
EPS growth (last fiscal year) (13.55%) (7.88%) 14.02%
Revenue growth, 5-year CAGR 6.27% 46.61% 10.81%
Net income growth, 5-year CAGR (7.72%) 0.00% 0.00%

Health

Metric BABA PDD Internet Retail median
Debt to equity 0.24 0.00 0.10
Current ratio 1.36 2.62 1.48
Net debt to EBITDA (0.93) (5.16) (0.25)

Dividend

Metric BABA PDD Internet Retail median
Dividend yield 0.96% — 1.79%
Payout ratio 0.25 — 0.25

Size

Metric BABA PDD Internet Retail median
Market cap 276.46b 117.32b 413.81m

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