GreenSky (NASDAQ:GSKY) and Alibaba Group (NYSE:BABA) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

32.4% of GreenSky shares are owned by institutional investors. Comparatively, 40.7% of Alibaba Group shares are owned by institutional investors. 54.8% of GreenSky shares are owned by insiders. Comparatively, 12.5% of Alibaba Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares GreenSky and Alibaba Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GreenSky $414.67 million 5.15 $24.26 million $0.07 168.29
Alibaba Group $56.15 billion N/A $13.10 billion $3.59 47.09

Alibaba Group has higher revenue and earnings than GreenSky. Alibaba Group is trading at a lower price-to-earnings ratio than GreenSky, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for GreenSky and Alibaba Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GreenSky 0 6 6 0 2.50
Alibaba Group 0 0 24 1 3.04

GreenSky presently has a consensus price target of $16.75, indicating a potential upside of 42.20%. Alibaba Group has a consensus price target of $218.12, indicating a potential upside of 29.01%. Given GreenSky’s higher possible upside, research analysts clearly believe GreenSky is more favorable than Alibaba Group.

Volatility and Risk

GreenSky has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 2.3, indicating that its stock price is 130% more volatile than the S&P 500.

Profitability

This table compares GreenSky and Alibaba Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GreenSky 6.27% -120.94% 6.31%
Alibaba Group 23.17% 12.72% 7.76%

Summary

Alibaba Group beats GreenSky on 11 of the 14 factors compared between the two stocks.

About GreenSky

GreenSky, Inc., a technology company, provides point-of-sale financing and payment solutions to merchants, consumers, and banks. It offers a proprietary technology infrastructure that support the full transaction lifecycle, including credit application, underwriting, real-time allocation to bank partners, document distribution, funding, settlement, and servicing functions. The company was incorporated in 2017 and is based in Atlanta, Georgia.

About Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform for brands and retailers; Rural Taobao program that enables rural residents and businesses to sell agricultural products to urban consumers; 1688.com, an online wholesale marketplace; Alibaba.com, an online wholesale marketplace; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Lingshoutong, a digital sourcing platform. The company also provides pay-for-performance and display marketing services; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange in China; and digital payment and financial technology platform services. In addition, it offers cloud computing services, including elastic computing, database, storage, virtualization network, large scale computing, security, and management and application services, big data analytics, a machine learning platform, and Internet of Things and other service for enterprises; and payment and escrow services; and movies, TV drama series, online dramas, variety shows, news feeds, games, literature and music, and other areas through various content platforms, as well as develops and operates mobile browsers. Further, the company provides AutoNavi, a mobile digital map, navigation, and real-time traffic information; DingTalk, a proprietary enterprise communication and collaboration platform; and Tmall Genie, an AI-powered voice assistant, which helps consumers to shop, order local services, search for information, control smart appliances, and play interactive content. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.

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