Sifting through countless of stocks in the Broadline Retail industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Alibaba Group Holding Limited or PDD Holdings Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Alibaba Group Holding Limited and PDD Holdings Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Alibaba Group Holding Limited and PDD Holdings Inc.

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses in the People's Republic of China and internationally. It operates through the Alibaba China E-Commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and All Others segments. The Alibaba China E-commerce Group segment operates Taobao and Tmall, which are digital retail platforms; Taobao Instant Commerce, a local services and on-demand delivery platform; 1688.com, a domestic wholesale marketplace; and Xianyu, a consumer-to-consumer community and marketplace for idle goods. Its Alibaba International Digital Commerce Group segment includes AliExpress, a global e-commerce platform; Trendyol, an e-commerce platform in Turkey; Lazada, an e-commerce platform in Southeast Asia; Daraz, an e-commerce platform in South Asia, primarily in Pakistan and Bangladesh; and Alibaba.com, an integrated international online wholesale marketplace. The Cloud Intelligence Group segment offers a suite of cloud services based on infrastructure-as-a-service, platform-as-a-service, and model-as-a-service. Its All Others segment comprises Amap, a provider of mobile digital maps, navigation, and real-time traffic information in China; Cainiao, which provides logistics solutions; Youku, an online long-form video platform in China; Freshippo, a retail platform for groceries and fresh goods; and Alibaba Health, a pharmaceutical and healthcare services platform. Alibaba Group Holding Limited was incorporated in 1999 and is based in Hangzhou, China.

PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.

Latest Broadline Retail and Alibaba Group Holding Limited, PDD Holdings Inc. Stock News

As of September 2, 2026, Alibaba Group Holding Limited had a $270.4 billion market capitalization, compared to the Broadline Retail median of $5.9 million. Alibaba Group Holding Limited’s stock is down 24% in 2026, down 4.2% in the previous five trading days and down 19.3% in the past year.

Currently, Alibaba Group Holding Limited’s price-earnings ratio is 17.5. Alibaba Group Holding Limited’s trailing 12-month revenue is $148.4 billion with a 7.0% net profit margin. Year-over-year quarterly sales growth most recently was 8.3%. Analysts expect adjusted earnings to reach $6.621 per share for the current fiscal year. Alibaba Group Holding Limited currently has a 0.9% dividend yield.

As of September 2, 2026, PDD Holdings Inc. had a $117.0 billion market cap, putting it in the 97th percentile of all stocks. PDD Holdings Inc.’s stock is down 27.4% in 2026, down 2.9% in the previous five trading days and down 32.44% in the past year.

Currently, PDD Holdings Inc.’s price-earnings ratio is 8.7. PDD Holdings Inc.’s trailing 12-month revenue is $61.7 billion with a 20.4% net profit margin. Year-over-year quarterly sales growth most recently was 206.9%. Analysts expect adjusted earnings to reach $10.289 per share for the current fiscal year. PDD Holdings Inc. does not currently pay a dividend.

How We Compare Alibaba Group Holding Limited and PDD Holdings Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Alibaba Group Holding Limited and PDD Holdings Inc.’s stock grades to see how they measure up against one another.

Learn more about A+ Investor here!

Sign Up to Receive a Free Special Report Showing How A+ Grades Can Help You Make Smarter Investment Decisions

Alibaba Group Holding Limited and PDD Holdings Inc. Stock Value Grades

Company	Ticker	Value
Alibaba Group Holding Limited	BABA	C
PDD Holdings Inc.	PDD	A

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Alibaba Group Holding Limited has a Value Score of 44, which is Average. PDD Holdings Inc. has a Value Score of 87, which is Deep Value.

The Value Stock Winner: PDD Holdings Inc.

As you can clearly see from the Value Grade breakdown above, PDD Holdings Inc. is considered to have better value than Alibaba Group Holding Limited. For investors who focus solely on a company’s valuation, PDD Holdings Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Alibaba Group Holding Limited and PDD Holdings Inc. Growth Grades

Company	Ticker	Growth
Alibaba Group Holding Limited	BABA	A
PDD Holdings Inc.	PDD	B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Alibaba Group Holding Limited has a Growth Score of 95, which is Very Strong. PDD Holdings Inc. has a Growth Score of 69, which is Strong.

The Growth Grade Winner: Alibaba Group Holding Limited

As you can clearly see from the Growth Grade breakdown above, Alibaba Group Holding Limited has a more attractive growth grade than PDD Holdings Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Alibaba Group Holding Limited could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Alibaba Group Holding Limited and PDD Holdings Inc.’s Momentum Grades

Company	Ticker	Momentum
Alibaba Group Holding Limited	BABA	D
PDD Holdings Inc.	PDD	F

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Alibaba Group Holding Limited has a Momentum Score of 24, which is Weak. PDD Holdings Inc. has a Momentum Score of 20, which is Very Weak.

The Momentum Stock Winner: No Clear Winner

Neither Alibaba Group Holding Limited or PDD Holdings Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Alibaba Group Holding Limited or PDD Holdings Inc. is the better investment when it comes to momentum.

Other Alibaba Group Holding Limited and PDD Holdings Inc. Grades

In addition to Momentum, Value and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Alibaba Group Holding Limited and PDD Holdings Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Alibaba Group Holding Limited or PDD Holdings Inc. Stock?

Overall, Alibaba Group Holding Limited stock has a Value Score of 44, Growth Score of 95 and Momentum Score of 24.

PDD Holdings Inc. stock has a Value Score of 87, Growth Score of 69 and Momentum Score of 20.

Comparing Alibaba Group Holding Limited and PDD Holdings Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.