Eventbrite (NYSE:EB) versus Dada Nexus (NASDAQ:DADA) Financial Analysis

Eventbrite (NYSE:EB) and Dada Nexus (NASDAQ:DADA) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Earnings & Valuation

This table compares Eventbrite and Dada Nexus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eventbrite	$336.37 million	1.00	-$26.48 million	($0.09)	-38.67
Dada Nexus	$9.98 billion	0.03	-$275.71 million	($1.11)	-1.16

Eventbrite has higher earnings, but lower revenue than Dada Nexus. Eventbrite is trading at a lower price-to-earnings ratio than Dada Nexus, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Eventbrite has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Dada Nexus has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Eventbrite and Dada Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eventbrite	-2.42%	-4.44%	-0.91%
Dada Nexus	-20.95%	-12.70%	-9.56%

Institutional and Insider Ownership

91.6% of Eventbrite shares are held by institutional investors. Comparatively, 59.3% of Dada Nexus shares are held by institutional investors. 21.5% of Eventbrite shares are held by company insiders. Comparatively, 8.5% of Dada Nexus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Eventbrite and Dada Nexus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eventbrite	0	4	2	0	2.33
Dada Nexus	0	5	1	0	2.17

Eventbrite currently has a consensus target price of $6.58, indicating a potential upside of 89.18%. Dada Nexus has a consensus target price of $2.70, indicating a potential upside of 109.30%. Given Dada Nexus’ higher probable upside, analysts clearly believe Dada Nexus is more favorable than Eventbrite.

Summary

Eventbrite beats Dada Nexus on 11 of the 14 factors compared between the two stocks.

About Eventbrite

Eventbrite, Inc. operates a two-sided marketplace that provides self-service ticketing and marketing tools for event creators in the United States and internationally. Its platform integrates components needed to plan, promote, and produce live events that allow creators to reduce friction and costs, enhance reach, and drive ticket sales. The company was formerly known as Mollyguard Corporation and changed its name to Eventbrite, Inc. in 2009. Eventbrite, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Dada Nexus

Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People’s Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platforms for consumers, retailers, and brand owners. The company was incorporated in 2014 and is headquartered in Shanghai, China.