Analyzing Alibaba Group Holding Limited (BABA) & E Commerce China Dangdang (DANG)
Alibaba Group Holding Limited (NYSE: BABA) and E Commerce China Dangdang (NYSE:DANG) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Volatility & Risk
Alibaba Group Holding Limited has a beta of 2.64, indicating that its share price is 164% more volatile than the S&P 500. Comparatively, E Commerce China Dangdang has a beta of 3.34, indicating that its share price is 234% more volatile than the S&P 500.
Institutional and Insider Ownership
37.4% of Alibaba Group Holding Limited shares are owned by institutional investors. Comparatively, 25.7% of E Commerce China Dangdang shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Alibaba Group Holding Limited and E Commerce China Dangdang’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alibaba Group Holding Limited||$26.42 billion||16.20||$10.93 billion||$2.88||58.44|
|E Commerce China Dangdang||N/A||N/A||N/A||($0.15)||-44.20|
Alibaba Group Holding Limited has higher revenue and earnings than E Commerce China Dangdang. E Commerce China Dangdang is trading at a lower price-to-earnings ratio than Alibaba Group Holding Limited, indicating that it is currently the more affordable of the two stocks.
This table compares Alibaba Group Holding Limited and E Commerce China Dangdang’s 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%|
|E Commerce China Dangdang||8.34%||107.58%||17.19%|
This is a breakdown of current recommendations for Alibaba Group Holding Limited and E Commerce China Dangdang, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alibaba Group Holding Limited||1||1||30||1||2.94|
|E Commerce China Dangdang||0||0||0||0||N/A|
Alibaba Group Holding Limited presently has a consensus price target of $167.15, suggesting a potential downside of 0.68%. Given Alibaba Group Holding Limited’s higher probable upside, analysts plainly believe Alibaba Group Holding Limited is more favorable than E Commerce China Dangdang.
Alibaba Group Holding Limited beats E Commerce China Dangdang on 7 of the 10 factors compared between the two stocks.
Alibaba Group Holding Limited Company Profile
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).
E Commerce China Dangdang Company Profile
E-Commerce China Dangdang Inc. is a business to consumer e-commerce company. The Company is focused on selling books online. The Company operates and manages its business in the segment of the provision of a single class of global services for the delivery of content and applications over the Internet. It offers over 1,200,000 book titles, including approximately 1,100,000 Chinese language titles. It offers other media products and general merchandise categories on its Internet platform, including fashion and apparel beauty and personal care products, home and lifestyle products, and baby, children and maternity products. It also offers the dangdang.com marketplace program, which allows third-party merchants to sell their general merchandise products alongside its products. Its Internet platform consists of its dangdang.com Website and its Dangdang mobile shopping application. Its Dangdang Reader application allows customers to browse for, download, purchase and read e-books.
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