Comparing Alibaba Group (NYSE:BABA) & Iota Communications (OTCMKTS:IOTC)


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Alibaba Group (NYSE:BABA) and Iota Communications (OTCMKTS:IOTC) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Alibaba Group and Iota Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alibaba Group $71.99 billion 9.51 $21.10 billion $6.03 41.95
Iota Communications $2.31 million 40.88 -$56.78 million N/A N/A

Alibaba Group has higher revenue and earnings than Iota Communications.

Profitability

This table compares Alibaba Group and Iota Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alibaba Group 22.56% 12.74% 8.50%
Iota Communications N/A N/A N/A

Institutional and Insider Ownership

40.4% of Alibaba Group shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by company insiders. Comparatively, 6.2% of Iota Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Alibaba Group has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Iota Communications has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alibaba Group and Iota Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alibaba Group 0 2 25 1 2.96
Iota Communications 0 0 0 0 N/A

Alibaba Group presently has a consensus price target of $323.04, indicating a potential upside of 27.71%. Given Alibaba Group’s higher probable upside, research analysts clearly believe Alibaba Group is more favorable than Iota Communications.

Summary

Alibaba Group beats Iota Communications on 11 of the 12 factors compared between the two stocks.

About Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alibaba Health Internet platforms for pharmaceutical and healthcare products; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Tmall Global, an import e-commerce platform. It also operates Lingshoutong, a digital sourcing platform; Cainiao Network logistic services platform; Ele.me, a delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance and display marketing services; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large-scale computing, security, management and application, big data analytics, and Internet of Things and other services for enterprises; payment and escrow services; and movies, television series, variety shows, animations, and other video content. Additionally, the company operates Youku, an online video platform; 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 app; and Tmall Genie, an AI-powered smart speaker. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.

About Iota Communications

Iota Communications, Inc., through its subsidiaries, operates as a wireless network carrier and software-as-a-service company. The company operates through four segments: Iota Networks, Iota Commercial Solutions, Iota Communications, and Iota Holdings. It provides Internet of Things (IoT) solutions that optimize energy efficiency, sustainability and operations for businesses and commercial facilities. The company also provides network hosting services; and BrightAI, an analytic platform that gathers data from end point devices such as sensors and thermostats using wireless connectivity and produces analysis reports to reflect useful information on energy consumption, as well as solar energy system installation services and LED lighting retrofit. In addition, it provides turn-key services to its commercial customers; and energy management, asset tracking, and predicative maintenance. The company was formerly known as Solbright Group, Inc. and changed its name to Iota Communications, Inc. in November 2018. Iota Communications, Inc. is based in New Hope, Pennsylvania.

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