Critical Analysis: Dingdong (Cayman) (NYSE:DDL) versus Newegg Commerce (NASDAQ:NEGG)

Newegg Commerce (NASDAQ:NEGG) and Dingdong (Cayman) (NYSE:DDL) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Profitability

This table compares Newegg Commerce and Dingdong (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newegg Commerce	N/A	N/A	N/A
Dingdong (Cayman)	1.54%	36.51%	5.54%

Valuation & Earnings

This table compares Newegg Commerce and Dingdong (Cayman)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newegg Commerce	$1.44 million	416.99	-$4.88 million	N/A	N/A
Dingdong (Cayman)	$3.42 billion	0.14	$31.70 million	$0.24	8.27

Dingdong (Cayman) has higher revenue and earnings than Newegg Commerce.

Analyst Ratings

This is a summary of current ratings for Newegg Commerce and Dingdong (Cayman), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newegg Commerce	1	0	0	0	1.00
Dingdong (Cayman)	0	2	0	0	2.00

Institutional and Insider Ownership

0.5% of Newegg Commerce shares are held by institutional investors. Comparatively, 24.7% of Dingdong (Cayman) shares are held by institutional investors. 22.9% of Newegg Commerce shares are held by company insiders. Comparatively, 29.8% of Dingdong (Cayman) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Newegg Commerce has a beta of 3.4, suggesting that its stock price is 240% more volatile than the S&P 500. Comparatively, Dingdong (Cayman) has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Summary

Dingdong (Cayman) beats Newegg Commerce on 8 of the 10 factors compared between the two stocks.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, China.