Newegg Commerce (NASDAQ:NEGG – Get Free Report) and Alibaba Group (NYSE:BABA – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Profitability
This table compares Newegg Commerce and Alibaba Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newegg Commerce | N/A | N/A | N/A |
| Alibaba Group | 9.12% | 7.43% | 4.37% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Newegg Commerce and Alibaba Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newegg Commerce | 1 | 0 | 0 | 0 | 1.00 |
| Alibaba Group | 0 | 6 | 16 | 0 | 2.73 |
Valuation & Earnings
This table compares Newegg Commerce and Alibaba Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newegg Commerce | $1.24 million | 1,291.21 | -$43.33 million | N/A | N/A |
| Alibaba Group | $137.30 billion | 2.36 | $17.93 billion | $5.30 | 25.52 |
Alibaba Group has higher revenue and earnings than Newegg Commerce.
Risk & Volatility
Newegg Commerce has a beta of 4.17, indicating that its stock price is 317% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.
Insider and Institutional Ownership
0.5% of Newegg Commerce shares are held by institutional investors. Comparatively, 13.5% of Alibaba Group shares are held by institutional investors. 22.9% of Newegg Commerce shares are held by insiders. Comparatively, 12.5% of Alibaba Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Alibaba Group beats Newegg Commerce on 9 of the 12 factors compared between the two stocks.
About Newegg Commerce
Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.
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.
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