Alibaba Group Holding (NYSE: BABA) is one of 29 public companies in the “E-commerce & Auction Services” industry, but how does it compare to its competitors? We will compare Alibaba Group Holding to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Alibaba Group Holding and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Alibaba Group Holding $26.99 billion $11.17 billion 58.87
Alibaba Group Holding Competitors $2.66 billion $890.81 million -31.69

Alibaba Group Holding has higher revenue and earnings than its competitors. Alibaba Group Holding is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Alibaba Group Holding has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500. Comparatively, Alibaba Group Holding’s competitors have a beta of 1.53, meaning that their average stock price is 53% more volatile than the S&P 500.

Profitability

This table compares Alibaba Group Holding and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alibaba Group Holding 30.72% 20.40% 11.77%
Alibaba Group Holding Competitors -1,538.21% -32.17% -7.90%

Analyst Recommendations

This is a summary of recent ratings for Alibaba Group Holding and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alibaba Group Holding 1 1 30 1 2.94
Alibaba Group Holding Competitors 114 733 1566 87 2.65

Alibaba Group Holding presently has a consensus price target of $169.61, suggesting a potential upside of 0.04%. As a group, “E-commerce & Auction Services” companies have a potential upside of 5.74%. Given Alibaba Group Holding’s competitors higher possible upside, analysts plainly believe Alibaba Group Holding has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

37.4% of Alibaba Group Holding shares are held by institutional investors. Comparatively, 49.6% of shares of all “E-commerce & Auction Services” companies are held by institutional investors. 19.0% of shares of all “E-commerce & Auction Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Alibaba Group Holding beats its competitors on 9 of the 13 factors compared.

Alibaba Group Holding 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).

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