Alibaba Group Holding Limited (BABA) versus The Competition Critical Survey
Alibaba Group Holding Limited (NYSE: BABA) is one of 29 publicly-traded companies in the “E-commerce & Auction Services” industry, but how does it compare to its rivals? We will compare Alibaba Group Holding Limited to related businesses based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, profitability, dividends and risk.
Institutional & 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 insiders. Comparatively, 17.9% of shares of all “E-commerce & Auction Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Alibaba Group Holding Limited and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Alibaba Group Holding Limited||$26.99 billion||$11.17 billion||62.68|
|Alibaba Group Holding Limited Competitors||$5.30 billion||$868.94 million||-27.47|
Alibaba Group Holding Limited has higher revenue and earnings than its rivals. Alibaba Group Holding Limited is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings and target prices for Alibaba Group Holding Limited and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alibaba Group Holding Limited||1||1||31||1||2.94|
|Alibaba Group Holding Limited Competitors||87||680||1571||84||2.68|
Alibaba Group Holding Limited presently has a consensus target price of $175.09, indicating a potential downside of 3.01%. As a group, “E-commerce & Auction Services” companies have a potential upside of 17.42%. Given Alibaba Group Holding Limited’s rivals higher probable upside, analysts clearly believe Alibaba Group Holding Limited has less favorable growth aspects than its rivals.
This table compares Alibaba Group Holding Limited and its rivals’ 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||-1,537.86%||-31.01%||-7.17%|
Risk and Volatility
Alibaba Group Holding Limited has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500. Comparatively, Alibaba Group Holding Limited’s rivals have a beta of 1.53, indicating that their average stock price is 53% more volatile than the S&P 500.
Alibaba Group Holding Limited beats its rivals 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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