Rimini Street (NASDAQ:RMNI – Get Free Report) and Alibaba Group (NYSE:BABA – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
73.8% of Rimini Street shares are owned by institutional investors. Comparatively, 13.5% of Alibaba Group shares are owned by institutional investors. 41.2% of Rimini Street shares are owned by company insiders. Comparatively, 12.5% of Alibaba Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Rimini Street and Alibaba Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rimini Street | -7.87% | -83.26% | 10.79% |
| Alibaba Group | 12.29% | 12.89% | 7.69% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rimini Street | $426.21 million | 0.74 | $26.06 million | ($0.37) | -9.27 |
| Alibaba Group | $996.35 billion | 0.29 | $11.08 billion | $7.45 | 16.15 |
Alibaba Group has higher revenue and earnings than Rimini Street. Rimini Street is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Rimini Street and Alibaba Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rimini Street | 0 | 0 | 2 | 0 | 3.00 |
| Alibaba Group | 0 | 0 | 14 | 1 | 3.07 |
Rimini Street currently has a consensus price target of $6.00, suggesting a potential upside of 74.93%. Alibaba Group has a consensus price target of $154.21, suggesting a potential upside of 28.19%. Given Rimini Street’s higher probable upside, research analysts plainly believe Rimini Street is more favorable than Alibaba Group.
Risk and Volatility
Rimini Street has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Summary
Alibaba Group beats Rimini Street on 9 of the 15 factors compared between the two stocks.
About Rimini Street
Rimini Street, Inc. provides enterprise software products, services, and support. The company engages in the provision of support services for Oracle and SAP enterprise software products. It also provides Rimini ONE, an outsourcing option that offers a set of unified and integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize its clients’ application, database, and technology enterprise software; Rimini Support, a mission-critical support for Oracle, SAP, proprietary and open-source database, and technology software; Rimini Manage, a suite of managed services for application and database software; Rimini Protect, a suite of personalized software security services and solutions; and Rimini Connect, a suite of managed interoperability solutions for browsers, operating systems, and email systems. In addition, the company offers Rimini Watch, a suite of observability solutions that include monitoring and system health check solutions; Rimini Consult, a suite of professional services for clients’ enterprise software customization, configuration, implementation, integration, interoperability, migration, staff augmentation, and other project needs; and Rimini Custom, a program that expands support and related services to a broader portfolio of enterprise software. The company serves Fortune 500 companies and Fortune Global 100 companies across various industries. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was incorporated in 2005 and is headquartered in Las Vegas, Nevada.
About Alibaba Group
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.
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