Analyzing Delivery Hero (OTCMKTS:DLVHF) & Dada Nexus (NASDAQ:DADA)

Delivery Hero (OTCMKTS:DLVHF) and Dada Nexus (NASDAQ:DADA) are both consumer cyclical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

59.3% of Dada Nexus shares are owned by institutional investors. 8.5% of Dada Nexus 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 target prices for Delivery Hero and Dada Nexus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delivery Hero	0	0	0	1	4.00
Dada Nexus	0	6	2	0	2.25

Dada Nexus has a consensus target price of $3.35, suggesting a potential upside of 199.49%. Given Dada Nexus’ higher probable upside, analysts clearly believe Dada Nexus is more favorable than Delivery Hero.

Profitability

This table compares Delivery Hero and Dada Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Delivery Hero	N/A	N/A	N/A
Dada Nexus	-19.81%	-10.94%	-8.29%

Valuation & Earnings

This table compares Delivery Hero and Dada Nexus’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delivery Hero	N/A	N/A	N/A	N/A	N/A
Dada Nexus	$10.18 billion	0.03	-$275.71 million	($1.28)	-0.88

Delivery Hero has higher earnings, but lower revenue than Dada Nexus.

About Delivery Hero

Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 70 countries in Asia, the Middle East, Africa, Europe, and Latin America. The company was founded in 2011 and is headquartered in Berlin, Germany.

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.