Head-To-Head Review: Treasure Global (NASDAQ:TGL) & Dada Nexus (NASDAQ:DADA)

Treasure Global (NASDAQ:TGL) and Dada Nexus (NASDAQ:DADA) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Earnings and Valuation

This table compares Treasure Global and Dada Nexus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treasure Global	$22.07 million	0.12	-$6.59 million	N/A	N/A
Dada Nexus	$9.66 billion	0.05	-$279.28 million	($1.07)	-1.81

Treasure Global has higher earnings, but lower revenue than Dada Nexus.

Profitability

This table compares Treasure Global and Dada Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treasure Global	-99.73%	-22.72%	-21.33%
Dada Nexus	-21.09%	-11.01%	-8.22%

Analyst Ratings

This is a breakdown of current ratings and target prices for Treasure Global and Dada Nexus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treasure Global	0	0	0	0	0.00
Dada Nexus	0	3	1	0	2.25

Dada Nexus has a consensus price target of $2.95, suggesting a potential upside of 52.45%. Given Dada Nexus’ stronger consensus rating and higher possible upside, analysts clearly believe Dada Nexus is more favorable than Treasure Global.

Institutional and Insider Ownership

59.3% of Dada Nexus shares are held by institutional investors. 0.2% of Treasure Global shares are held by insiders. Comparatively, 8.5% of Dada Nexus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Treasure Global has a beta of 3.05, meaning that its share price is 205% more volatile than the S&P 500. Comparatively, Dada Nexus has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Summary

Dada Nexus beats Treasure Global on 9 of the 12 factors compared between the two stocks.

About Treasure Global

Treasure Global Inc. offers e-commerce activities through its platform. Its platform provides consumers and merchants instant rebates and affiliate cashback programs, while providing a seamless e-payment solution with rebates in both e-commerce and physical retailers/merchant settings. The company offers ZCITY App, a payment gateway platform. Treasure Global Inc. was incorporated in 2020 and is based in New York, New York.

About Dada Nexus

Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People’s Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platforms for consumers, retailers, and brand owners. The company was incorporated in 2014 and is headquartered in Shanghai, China.