Alibaba Group Holding Limited (BABA) vs PDD Holdings Inc. (PDD)
PDD leads on 10 of 12 compared metrics.
A side-by-side comparison of Alibaba Group Holding Limited and PDD Holdings Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 9, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
BABA
Alibaba Group Holding Limited
$111.14Consumer Cyclical
PDD
PDD Holdings Inc.
$85.88Consumer Cyclical
Total return — BABA vs PDD
growth of $100 · last 8yBABA -43.9%PDD +217.4%PDD compounded faster
Log scale — wide-divergence pair
BABA PDD
BABA vs PDD: by the numbers
- •BABA is the larger company ($266.41B vs $122.24B market cap).
- •PDD trades at the lower earnings multiple (9.17 vs 17.60 P/E).
- •PDD converts more revenue to profit (21.53% vs 10.09% net margin).
- •PDD grew revenue faster over the past five years (40.98% vs 6.31% CAGR).
- •BABA pays a dividend (0.96% yield) while PDD does not currently pay one.
Which is better, BABA or PDD?
Metric tally: BABA 2 · PDD 10It depends on what you're optimizing for:
ValuePDD(lower P/E)
GrowthPDD(faster 5Y revenue CAGR)
QualityPDD(higher ROIC)
Metrics side by side
Valuation
| Metric | BABA | PDD |
|---|---|---|
| P/E ratio | 17.60 | 9.17● |
| P/S ratio | 1.80● | 2.00 |
| P/B ratio | 1.71● | 2.05 |
| EV / EBITDA | 30.09 | 6.99● |
| FCF yield | — | 12.17% |
Profitability
| Metric | BABA | PDD |
|---|---|---|
| Gross margin | 39.77% | 55.98%● |
| Operating margin | 5.78% | 22.17%● |
| Net margin | 10.09% | 21.53%● |
| ROE | 9.58% | 22.09%● |
| ROIC | 3.17% | 18.11%● |
Dividends
| Metric | BABA | PDD |
|---|---|---|
| Dividend yield | 0.96% | — |
| Payout ratio | 15.89% | — |
Growth (annualized)
| Metric | BABA | PDD |
|---|---|---|
| Revenue CAGR (5Y) | 6.31% | 40.98%● |
| EPS CAGR (5Y) | -4.87% | — |
| FCF CAGR (5Y) | -62.38% | 32.63%● |
| Total return CAGR (5Y) | -10.33% | -4.87%● |
Frequently asked
- Which is better, BABA or PDD?
- It depends on your goal. value: PDD (lower P/E); growth: PDD (faster 5Y revenue CAGR); quality: PDD (higher ROIC). Across all compared metrics, PDD leads 10 to 2.
- Is BABA or PDD cheaper?
- On trailing earnings, PDD is cheaper: BABA trades at a 17.60 P/E and PDD at 9.17.
- Which has grown faster, BABA or PDD?
- Over the past five years, PDD grew revenue faster — BABA at a 6.31% CAGR versus PDD at 40.98%.
- Does BABA or PDD pay a bigger dividend?
- BABA pays a dividend (0.96% yield) while PDD does not currently pay one.
- Is BABA or PDD more profitable?
- PDD runs the higher net margin — BABA at 10.09% versus PDD at 21.53%.
- Which has been the better investment, BABA or PDD?
- Over the past 5-year, BABA delivered the higher annualized total return — BABA at 3.91% versus PDD at -4.87%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Alibaba Group P/E ratioPDD P/E ratioAlibaba Group dividend yieldPDD dividend yieldAlibaba Group ROEPDD ROEAlibaba Group operating marginPDD operating marginAlibaba Group revenue growthPDD revenue growthAlibaba Group free cash flowPDD free cash flow
Alibaba Group & PDD appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 9, 2026.