Alibaba Group Holding Limited (NYSE: BABA) and Geeknet (NASDAQ:GKNT) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Alibaba Group Holding Limited and Geeknet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alibaba Group Holding Limited 1 1 30 1 2.94
Geeknet 0 0 0 0 N/A

Alibaba Group Holding Limited currently has a consensus target price of $165.64, indicating a potential downside of 3.55%. Given Alibaba Group Holding Limited’s higher probable upside, equities research analysts clearly believe Alibaba Group Holding Limited is more favorable than Geeknet.

Institutional and Insider Ownership

36.8% of Alibaba Group Holding Limited shares are held by institutional investors. 12.5% of Alibaba Group Holding Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Alibaba Group Holding Limited and Geeknet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alibaba Group Holding Limited 28.77% 16.85% 10.63%
Geeknet -20.58% -25.85% -19.84%

Earnings & Valuation

This table compares Alibaba Group Holding Limited and Geeknet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alibaba Group Holding Limited $26.42 billion 16.53 $10.93 billion $2.88 59.63
Geeknet N/A N/A N/A N/A N/A

Alibaba Group Holding Limited has higher revenue and earnings than Geeknet.

Summary

Alibaba Group Holding Limited beats Geeknet on 9 of the 9 factors compared between the two stocks.

About Alibaba Group Holding Limited

Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).

About Geeknet

Geeknet, Inc. (Geeknet) sells collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers through the ThinkGeek Website and exclusive products to the Company’s wholesale channel customers. The Company has three segments: Website, Wholesale and ThinkGeek Solutions. The ThinkGeek Solutions segment has been aggregated into the Website segment. The Website segment sells geek-themed retail products and video game-themed merchandise through the ThinkGeek Website and through the ThinkGeek Solutions Web-stores. The Wholesale segment sells primarily exclusive GeekLabs (the in-house product development team) products to brick-and-mortar retailers. The Company along with its subsidiaries, operates a business aimed at the global geek community, which includes technology enthusiasts, pop-culture aficionados and other fans. ThinkGeek, Inc. and ThinkGeek Solutions, Inc. are its two wholly owned subsidiaries.

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