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

Institutional and Insider Ownership

37.4% of Alibaba Group Holding Limited shares are owned by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are owned by institutional investors. 12.5% of Alibaba Group Holding Limited shares are owned by company insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alibaba Group Holding Limited and its peers, as provided by MarketBeat.

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 Competitors 116 735 1580 88 2.65

Alibaba Group Holding Limited currently has a consensus target price of $172.64, suggesting a potential downside of 0.04%. As a group, “E-commerce & Auction Services” companies have a potential upside of 12.10%. Given Alibaba Group Holding Limited’s peers higher probable upside, analysts plainly believe Alibaba Group Holding Limited has less favorable growth aspects than its peers.

Risk and Volatility

Alibaba Group Holding Limited has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500. Comparatively, Alibaba Group Holding Limited’s peers 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 Limited and its peers’ 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%
Alibaba Group Holding Limited Competitors -1,537.85% -30.98% -7.15%

Earnings & Valuation

This table compares Alibaba Group Holding Limited and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Alibaba Group Holding Limited $26.99 billion $11.17 billion 59.97
Alibaba Group Holding Limited Competitors $2.66 billion $891.38 million -31.65

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

Summary

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

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).

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