Financial Survey: Alibaba Group Holding Limited (BABA) and eBay (EBAY)
Alibaba Group Holding Limited (NYSE: BABA) and eBay (NASDAQ:EBAY) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.
Institutional & Insider Ownership
37.4% of Alibaba Group Holding Limited shares are owned by institutional investors. Comparatively, 84.9% of eBay shares are owned by institutional investors. 6.8% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Alibaba Group Holding Limited and eBay’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%|
This is a summary of recent ratings for Alibaba Group Holding Limited and eBay, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alibaba Group Holding Limited||1||1||30||1||2.94|
Alibaba Group Holding Limited presently has a consensus price target of $167.30, suggesting a potential downside of 1.54%. eBay has a consensus price target of $37.17, suggesting a potential upside of 2.98%. Given eBay’s higher possible upside, analysts clearly believe eBay is more favorable than Alibaba Group Holding Limited.
Volatility & Risk
Alibaba Group Holding Limited has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Valuation and Earnings
This table compares Alibaba Group Holding Limited and eBay’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alibaba Group Holding Limited||$26.40 billion||16.37||$10.92 billion||$2.88||59.00|
|eBay||$9.16 billion||4.22||$2.88 billion||$6.62||5.45|
Alibaba Group Holding Limited has higher revenue and earnings than eBay. eBay is trading at a lower price-to-earnings ratio than Alibaba Group Holding Limited, indicating that it is currently the more affordable of the two stocks.
Alibaba Group Holding Limited beats eBay on 9 of the 15 factors compared between the two stocks.
Alibaba Group Holding Limited Company Profile
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).
eBay Company Profile
eBay Inc. (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company connects buyers and sellers around the world. Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it. Its platforms are accessible through an online experience (desktop and laptop computers), from mobile devices (smartphones and tablets) and by application programming interface (API) (platform access for third-party software developers). The Company’s Marketplace platforms include its online marketplace located at www.ebay.com, localized counterparts and the eBay mobile applications. The Company’s StubHub platforms include its online ticket platform located at www.stubhub.com, the StubHub mobile applications and Ticketbis. The Company’s Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.
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