PDD Holdings Inc. (PDD)vsUlta Beauty Inc (ULTA)
PDD
PDD Holdings Inc.
$77.81
-0.04%
CONSUMER CYCLICAL · Cap: $117.02B
ULTA
Ulta Beauty Inc
$546.78
+2.08%
CONSUMER CYCLICAL · Cap: $23.48B
Smart Verdict
WallStSmart Research — data-driven comparison
PDD Holdings Inc. generates 3379% more annual revenue ($450.78B vs $12.96B). PDD leads profitability with a 20.4% profit margin vs 9.3%. PDD appears more attractively valued with a PEG of 0.72. PDD earns a higher WallStSmart Score of 75/100 (B).
PDD
Strong Buy75
out of 100
Grade: B
ULTA
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.8%
Fair Value
$353.87
Current Price
$77.81
$276.06 discount
Margin of Safety
-20.8%
Fair Value
$565.46
Current Price
$546.78
$18.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Generating 25.7B in free cash flow
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Every $100 of equity generates 46 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Weak financial health signals
Earnings declined 11.2%
Expensive relative to growth rate
Trading at 8.6x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PDD
The strongest argument for PDD centers on P/E Ratio, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 20.4% and operating margin at 24.7%. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bull Case : ULTA
The strongest argument for ULTA centers on Return on Equity, Altman Z-Score.
Bear Case : PDD
The primary concerns for PDD are Piotroski F-Score, EPS Growth.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PDD profiles as a mature stock while ULTA is a value play — different risk/reward profiles.
ULTA carries more volatility with a beta of 0.85 — expect wider price swings.
ULTA is growing revenue faster at 8.9% — sustainability is the question.
PDD generates stronger free cash flow (25.7B), providing more financial flexibility.
Bottom Line
PDD scores higher overall (75/100 vs 61/100), backed by strong 20.4% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
PDD Holdings Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · China
Pinduoduo Inc., operates an electronic commerce platform in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
Visit Website →Ulta Beauty Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.
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