Alibaba Group Holding (BABA) and eBay (EBAY) Financial Survey
Alibaba Group Holding (NYSE: BABA) and eBay (NASDAQ:EBAY) are both large-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Earnings & Valuation
This table compares Alibaba Group Holding and eBay’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alibaba Group Holding||$26.99 billion||15.97||$11.17 billion||$2.88||58.87|
|eBay||$9.16 billion||4.47||$2.88 billion||$6.62||5.78|
Alibaba Group Holding has higher revenue and earnings than eBay. eBay is trading at a lower price-to-earnings ratio than Alibaba Group Holding, indicating that it is currently the more affordable of the two stocks.
This table compares Alibaba Group Holding and eBay’s 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%|
Institutional and Insider Ownership
37.4% of Alibaba Group Holding shares are owned by institutional investors. Comparatively, 84.8% 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 is poised for long-term growth.
Risk & 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, eBay has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Alibaba Group Holding and eBay, as provided 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 currently has a consensus price target of $169.61, suggesting a potential upside of 0.04%. eBay has a consensus price target of $37.59, suggesting a potential downside of 1.83%. Given Alibaba Group Holding’s stronger consensus rating and higher possible upside, research analysts plainly believe Alibaba Group Holding is more favorable than eBay.
Alibaba Group Holding beats eBay on 11 of the 15 factors compared between the two stocks.
About Alibaba Group Holding
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 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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