PDD (NASDAQ:PDD – Get Free Report) and Seven and I (OTCMKTS:SVNDY – Get Free Report) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Volatility and Risk
PDD has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.
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% |
Insider & Institutional 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings for PDD and Seven and I, as provided 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 price target of $110.31, suggesting a potential upside of 40.32%. Given PDD’s stronger consensus rating and higher possible upside, analysts clearly believe PDD is more favorable than Seven and I.
Earnings and Valuation
This table compares PDD and Seven and I”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PDD | $61.75 billion | 1.81 | $13.99 billion | $9.08 | 8.66 |
| Seven and I | $69.63 billion | 0.45 | $1.96 billion | $0.80 | 16.84 |
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.
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.
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