Critical Survey: China Recycling Energy (NASDAQ:CREG) versus Pinduoduo (NASDAQ:PDD)

China Recycling Energy (NASDAQ:CREG) and Pinduoduo (NASDAQ:PDD) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares China Recycling Energy and Pinduoduo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Recycling Energy N/A -32.88% -18.93%
Pinduoduo -73.90% -76.66% -31.39%

Valuation & Earnings

This table compares China Recycling Energy and Pinduoduo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Recycling Energy $4.89 million 1.05 -$66.00 million N/A N/A
Pinduoduo $1.91 billion 14.84 -$1.49 billion ($2.00) -12.79

China Recycling Energy has higher earnings, but lower revenue than Pinduoduo.

Insider & Institutional Ownership

2.5% of China Recycling Energy shares are held by institutional investors. Comparatively, 12.2% of Pinduoduo shares are held by institutional investors. 16.7% of China Recycling Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for China Recycling Energy and Pinduoduo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Recycling Energy 0 0 0 0 N/A
Pinduoduo 2 2 10 0 2.57

Pinduoduo has a consensus price target of $28.50, suggesting a potential upside of 11.47%. Given Pinduoduo’s higher possible upside, analysts clearly believe Pinduoduo is more favorable than China Recycling Energy.

China Recycling Energy Company Profile

China Recycling Energy Corporation engages in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. The company offers waste pressure-to-energy solutions, including the blast furnace top gas recovery turbine unit, a system that utilizes high pressure gas emitted from the blast furnace top to drive turbine units and generates electricity; and waste heat-to-energy solutions, such as heat power generation projects for applications in cement, steel, coking coal, and nonferrous metal industries, which collect the residual heat from various manufacturing processes. It also provides waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas from coal mining, petroleum exploitation, refinery processing, or other sources as a fuel source to generate electricity; and the combined cycle power plant, which employs power generating cycle to utilize the waste gas that generates electricity by burning the flammable waste gas in a gas turbine, as well as uses the waste heat from burning the gas to make steam to generate additional electricity through a steam turbine. In addition, the company offers biomass power generation systems (BMPG); and waste heat power generation (WHPG) systems; and project investment, investment management, economic information consulting, technical, and financial leasing services, as well as leases energy saving systems and equipment. As of December 31, 2017, it had five recycling WHPG systems and four BMPG systems. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. China Recycling Energy Corporation was incorporated in 1980 and is headquartered in Xi'an, China.

Pinduoduo Company Profile

Pinduoduo Inc. operates an e-commerce platform in the People's Republic of China. It also operates Pinduoduo, a mobile platform that offers a range of priced merchandise. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc. in July 2018. Pinduoduo Inc. was founded in 2015 and is based in Shanghai, the People's Republic of China.

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