Critical Comparison: Dada Nexus (NASDAQ:DADA) & Trade Desk (NASDAQ:TTD)

Trade Desk (NASDAQ:TTDGet Free Report) and Dada Nexus (NASDAQ:DADAGet Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Risk & Volatility

Trade Desk has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Dada Nexus has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

68.2% of Trade Desk shares are held by institutional investors. Comparatively, 23.9% of Dada Nexus shares are held by institutional investors. 10.8% of Trade Desk shares are held by insiders. Comparatively, 8.5% of Dada Nexus shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Trade Desk and Dada Nexus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trade Desk 8.35% 7.38% 3.54%
Dada Nexus -14.16% -13.84% -10.98%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Trade Desk and Dada Nexus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trade Desk 2 1 24 0 2.81
Dada Nexus 1 2 3 0 2.33

Trade Desk presently has a consensus target price of $82.81, indicating a potential upside of 16.12%. Dada Nexus has a consensus target price of $7.87, indicating a potential upside of 352.20%. Given Dada Nexus’ higher probable upside, analysts plainly believe Dada Nexus is more favorable than Trade Desk.

Earnings & Valuation

This table compares Trade Desk and Dada Nexus’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trade Desk $1.58 billion 22.16 $53.38 million $0.31 230.03
Dada Nexus $1.39 billion 0.33 -$291.13 million ($0.83) -2.10

Trade Desk has higher revenue and earnings than Dada Nexus. Dada Nexus is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.

Summary

Trade Desk beats Dada Nexus on 13 of the 14 factors compared between the two stocks.

About Trade Desk

(Get Free Report)

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company operates a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It also provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.

About Dada Nexus

(Get Free Report)

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 platform for consumers, retailers, and brand owner. The company was incorporated in 2014 and is headquartered in Shanghai, the People's Republic of China.

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