WallStSmart

PDD Holdings Inc. (PDD)vsUlta Beauty Inc (ULTA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PDD Holdings Inc. generates 3385% more annual revenue ($431.85B vs $12.39B). PDD leads profitability with a 23.0% 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 Buy

75

out of 100

Grade: B+

Growth: 6.0Profit: 8.5Value: 6.7Quality: 6.8
Piotroski: 2/9

ULTA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.0Quality: 6.3
Piotroski: 4/9Altman Z: 3.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PDDSignificantly Overvalued (-61.9%)

Margin of Safety

-61.9%

Fair Value

$66.03

Current Price

$99.81

$33.78 premium

UndervaluedFair: $66.03Overvalued
ULTASignificantly Overvalued (-292.1%)

Margin of Safety

-292.1%

Fair Value

$174.22

Current Price

$510.34

$336.12 premium

UndervaluedFair: $174.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PDD6 strengths · Avg: 9.5/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$45.66B10/10

Generating 45.7B in free cash flow

Market CapQuality
$141.69B9/10

Large-cap with strong market position

Return on EquityProfitability
27.3%9/10

Every $100 of equity generates 27 in profit

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

ULTA2 strengths · Avg: 10.0/10
Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

Altman Z-ScoreHealth
3.9410/10

Safe zone — low bankruptcy risk

Areas to Watch

PDD2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-10.8%2/10

Earnings declined 10.8%

ULTA3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

EPS GrowthGrowth
-5.4%2/10

Earnings declined 5.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : PDD

The strongest argument for PDD centers on P/E Ratio, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 23.0% and operating margin at 22.4%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : ULTA

The strongest argument for ULTA centers on Return on Equity, Altman Z-Score. Revenue growth of 11.8% demonstrates continued momentum.

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, EPS Growth.

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.

PDD is growing revenue faster at 12.0% — sustainability is the question.

PDD generates stronger free cash flow (45.7B), providing more financial flexibility.

Bottom Line

PDD scores higher overall (75/100 vs 55/100), backed by strong 23.0% margins and 12.0% revenue growth. 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.

Want to dig deeper into these stocks?