JD.com (NASDAQ: JD) and PDD Holdings (NASDAQ: PDD) -- better known as Pinduoduo -- are China's second- and third-largest e-commerce companies, respectively, after (NYSE: BABA).

JD, which was founded in 1998, flourished in Alibaba's shadow by building a massive first-party logistics network and taking on its own inventories instead of relying on third-party sellers. Pinduoduo, founded in 2015, initially carved out a niche with its discount marketplace for China's lower-tier cities before launching the country's largest online agricultural marketplace for farm-to-table produce.

Yet, the market has clearly favored Pinduoduo over JD. During the past 12 months, Pinduoduo's stock soared more than 80% even as JD's stock slumped nearly 50%. Let's see why the newcomer outperformed its older competitor -- and if it's still the better buy.

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Source Fool.com