Comparing PDD (NASDAQ:PDD) & Resources Connection (NASDAQ:RGP)

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

Risk and Volatility

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

Insider and Institutional Ownership

39.8% of PDD shares are owned by institutional investors. Comparatively, 93.2% of Resources Connection shares are owned by institutional investors. 3.7% of PDD shares are owned by insiders. Comparatively, 3.4% of Resources Connection shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PDD and Resources Connection, as provided by MarketBeat.

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

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

Profitability

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

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

Earnings and Valuation

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

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

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 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 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.