Amazon.com, Inc. (AMZN) vs Alibaba Group Holding Limited (BABA)

Amazon.com, Inc. and Alibaba Group Holding Limited are both Internet Retail companies. Amazon.com, Inc. is the larger, with a market value of $2.79T against $275.8B — 10.1× the size. Amazon.com, Inc. trades at the lower P/E: 20.2× against 24.5×. Amazon.com, Inc. grew revenue faster over the last twelve months: 15.8% against 10.9%. Amazon.com, Inc. has the higher net margin (17.4% vs 7.09%) and the higher return on invested capital (10.5% vs 2.99%). Across the 21 metrics below, Amazon.com, Inc. leads on 15 and Alibaba Group Holding Limited on 6.

Valuation

Metric AMZN BABA Internet Retail median
P/E 20.17 24.49 24.49
P/S 3.53 1.69 0.69
P/B 4.96 1.59 1.69
Price to free cash flow n/m n/m 15.07
EV/EBITDA 16.23 35.39 18.67
EV/Sales 3.54 1.54 0.75
Earnings yield 4.96% 4.08% (0.16%)
Free cash flow yield (0.28%) (10.33%) 0.00%

Profitability

Metric AMZN BABA Internet Retail median
Gross margin 50.77% 38.26% 43.51%
Operating margin 12.08% 4.34% 0.08%
Net margin 17.44% 7.09% 0.56%
Free cash flow margin (0.98%) 7.52% 0.00%
Return on equity 30.56% 6.93% 0.00%
Return on assets 15.22% 3.98% 0.00%
Return on invested capital 10.51% 2.99% 0.00%

Growth

Metric AMZN BABA Internet Retail median
Revenue growth (TTM) 15.77% 10.89% 10.80%
EPS growth (last fiscal year) 29.66% (13.55%) 14.02%
Revenue growth, 5-year CAGR 13.18% 6.27% 10.81%
Net income growth, 5-year CAGR 29.49% (7.72%) 0.00%

Health

Metric AMZN BABA Internet Retail median
Debt to equity 0.23 0.24 0.10
Current ratio 1.03 1.36 1.48
Net debt to EBITDA (0.39) (0.93) (0.25)

Dividend

Metric AMZN BABA Internet Retail median
Dividend yield — 0.94% 1.78%
Payout ratio — 0.25 0.25

Size

Metric AMZN BABA Internet Retail median
Market cap 2.79t 275.77b 410.52m

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