Alibaba Group (NYSE:BABA – Get Free Report) and 1stdibs.com (NASDAQ:DIBS – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Insider & Institutional Ownership
13.5% of Alibaba Group shares are owned by institutional investors. Comparatively, 67.0% of 1stdibs.com shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by company insiders. Comparatively, 23.5% of 1stdibs.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Alibaba Group has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, 1stdibs.com has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Alibaba Group | 14.85% | 13.09% | 7.75% |
| 1stdibs.com | -22.58% | -20.13% | -13.77% |
Valuation & Earnings
This table compares Alibaba Group and 1stdibs.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alibaba Group | $137.30 billion | 2.35 | $17.93 billion | $8.60 | 15.71 |
| 1stdibs.com | $88.26 million | 1.13 | -$18.63 million | ($0.55) | -4.98 |
Alibaba Group has higher revenue and earnings than 1stdibs.com. 1stdibs.com 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 Ratings
This is a breakdown of recent ratings for Alibaba Group and 1stdibs.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alibaba Group | 0 | 2 | 11 | 0 | 2.85 |
| 1stdibs.com | 0 | 1 | 0 | 0 | 2.00 |
Alibaba Group presently has a consensus price target of $159.69, suggesting a potential upside of 18.19%. Given Alibaba Group’s stronger consensus rating and higher possible upside, analysts clearly believe Alibaba Group is more favorable than 1stdibs.com.
Summary
Alibaba Group beats 1stdibs.com on 11 of the 14 factors compared between the two stocks.
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.
About 1stdibs.com
1stdibs.Com, Inc. operates an online marketplace for luxury design products worldwide. Its marketplace connects customers with sellers and makers of vintage, antique, and contemporary furniture; and home décor, jewelry, watches, art, and fashion products. The company was incorporated in 2000 and is headquartered in New York, New York.
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