Head to Head Analysis: Resources Connection (NASDAQ:RGP) vs. PDD (NASDAQ:PDD)

Resources Connection (NASDAQ:RGP) and PDD (NASDAQ:PDD) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Resources Connection	-10.55%	3.75%	2.98%
PDD	29.05%	46.08%	26.60%

Institutional & Insider Ownership

93.2% of Resources Connection shares are held by institutional investors. Comparatively, 39.8% of PDD shares are held by institutional investors. 3.4% of Resources Connection 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 is poised for long-term growth.

Risk & Volatility

Resources Connection has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, PDD has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Resources Connection and PDD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resources Connection	1	0	1	0	2.00
PDD	0	5	8	1	2.71

Resources Connection currently has a consensus price target of $10.00, indicating a potential upside of 78.25%. PDD has a consensus price target of $169.91, indicating a potential upside of 64.82%. Given Resources Connection’s higher probable upside, research analysts clearly believe Resources Connection is more favorable than PDD.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resources Connection	$560.19 million	0.33	$21.03 million	($3.28)	-1.71
PDD	$393.84 billion	0.36	$8.45 billion	$10.55	9.77

PDD has higher revenue and earnings than Resources Connection. Resources Connection 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 Resources Connection on 13 of the 15 factors compared between the two stocks.

About Resources Connection

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance. It provides transformations services comprising finance transformation, digital transformation, supply chain management, cloud migration, and data design and analytics. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

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.