Critical Contrast: Alibaba Group Holding Limited (BABA) vs. Its Peers
Alibaba Group Holding Limited (NYSE: BABA) is one of 30 publicly-traded companies in the “E-commerce & Auction Services” industry, but how does it compare to its competitors? We will compare Alibaba Group Holding Limited to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.
Risk & Volatility
Alibaba Group Holding Limited has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Alibaba Group Holding Limited’s competitors have a beta of 1.53, meaning that their average share price is 53% more volatile than the S&P 500.
This table compares Alibaba Group Holding Limited and its competitors’ 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||-1,537.88%||-31.09%||-7.18%|
Earnings & Valuation
This table compares Alibaba Group Holding Limited and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Alibaba Group Holding Limited||$26.99 billion||$11.17 billion||61.57|
|Alibaba Group Holding Limited Competitors||$5.30 billion||$868.94 million||-30.91|
Alibaba Group Holding Limited has higher revenue and earnings than its competitors. Alibaba Group Holding Limited 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.
Institutional & Insider Ownership
37.3% of Alibaba Group Holding Limited shares are held by institutional investors. Comparatively, 47.7% of shares of all “E-commerce & Auction Services” companies are held by institutional investors. 12.5% of Alibaba Group Holding Limited shares are held by insiders. Comparatively, 16.5% of shares of all “E-commerce & Auction Services” companies are held by 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.
This is a summary of current recommendations and price targets for Alibaba Group Holding Limited and its competitors, 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||88||693||1584||86||2.68|
Alibaba Group Holding Limited presently has a consensus target price of $178.21, suggesting a potential upside of 0.50%. As a group, “E-commerce & Auction Services” companies have a potential upside of 19.49%. Given Alibaba Group Holding Limited’s competitors higher possible upside, analysts plainly believe Alibaba Group Holding Limited has less favorable growth aspects than its competitors.
Alibaba Group Holding Limited beats its competitors 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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