BABA vs. V, MA, PDD, ACN, UBER, FI, MELI, RELX, PYPL, and DASH
Should you be buying Alibaba Group stock or one of its competitors? The main competitors of Alibaba Group include Visa (V), Mastercard (MA), PDD (PDD), Accenture (ACN), Uber Technologies (UBER), Fiserv (FI), MercadoLibre (MELI), Relx (RELX), PayPal (PYPL), and DoorDash (DASH). These companies are all part of the "business services, not elsewhere classified" industry.
Alibaba Group (NYSE:BABA) and Visa (NYSE:V) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations, earnings, media sentiment and community ranking.
Alibaba Group presently has a consensus target price of $109.96, indicating a potential upside of 40.37%. Visa has a consensus target price of $303.76, indicating a potential upside of 11.49%. Given Alibaba Group's higher possible upside, analysts clearly believe Alibaba Group is more favorable than Visa.
Visa has a net margin of 53.87% compared to Alibaba Group's net margin of 8.44%. Visa's return on equity of 51.23% beat Alibaba Group's return on equity.
Alibaba Group received 353 more outperform votes than Visa when rated by MarketBeat users. Likewise, 84.36% of users gave Alibaba Group an outperform vote while only 80.27% of users gave Visa an outperform vote.
Visa has lower revenue, but higher earnings than Alibaba Group. Alibaba Group is trading at a lower price-to-earnings ratio than Visa, indicating that it is currently the more affordable of the two stocks.
Alibaba Group pays an annual dividend of $0.98 per share and has a dividend yield of 1.3%. Visa pays an annual dividend of $2.08 per share and has a dividend yield of 0.8%. Alibaba Group pays out 22.8% of its earnings in the form of a dividend. Visa pays out 23.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alibaba Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
13.5% of Alibaba Group shares are owned by institutional investors. Comparatively, 82.2% of Visa shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by insiders. Comparatively, 0.2% of Visa shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Alibaba Group has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
In the previous week, Alibaba Group and Alibaba Group both had 32 articles in the media. Visa's average media sentiment score of 0.63 beat Alibaba Group's score of 0.53 indicating that Visa is being referred to more favorably in the news media.
Summary
Visa beats Alibaba Group on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BABA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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