Alibaba Group Holding Limited (BABA) vs Coupang, Inc. (CPNG)

Alibaba Group Holding Limited and Coupang, Inc. are both Internet Retail companies. Alibaba Group Holding Limited is the larger, with a market value of $276.5B against $26.6B — 10.4× the size. Coupang, Inc. has negative trailing earnings, so its P/E is not meaningful; Alibaba Group Holding Limited trades at 24.4×. Alibaba Group Holding Limited grew revenue faster over the last twelve months: 10.9% against 9.92%. Alibaba Group Holding Limited has the higher net margin (7.09% vs −2.16%) and the higher return on invested capital (2.99% vs 0.00%). Across the 19 metrics below, Alibaba Group Holding Limited leads on 11 and Coupang, Inc. on 8.

Valuation

Metric BABA CPNG Internet Retail median
P/E 24.43 n/m 24.88
P/S 1.69 0.75 0.71
P/B 1.59 8.91 1.67
Price to free cash flow n/m 253.40 15.31
EV/EBITDA 35.31 n/m 19.74
EV/Sales 1.53 0.60 0.77
Earnings yield 4.09% (2.94%) (0.16%)
Free cash flow yield (10.35%) 0.39% 0.00%

Profitability

Metric BABA CPNG Internet Retail median
Gross margin 38.26% 28.35% 43.51%
Operating margin 4.34% (1.77%) 0.08%
Net margin 7.09% (2.16%) 0.56%
Free cash flow margin 7.52% 0.30% 0.00%
Return on equity 6.93% (19.99%) 0.00%
Return on assets 3.98% (4.35%) 0.00%
Return on invested capital 2.99% 0.00% 0.00%

Growth

Metric BABA CPNG Internet Retail median
Revenue growth (TTM) 10.89% 9.92% 10.80%
EPS growth (last fiscal year) (13.55%) 37.50% 14.02%
Revenue growth, 5-year CAGR 6.27% 23.61% 10.81%
Net income growth, 5-year CAGR (7.72%) 0.00% 0.00%

Health

Metric BABA CPNG Internet Retail median
Debt to equity 0.24 0.21 0.10
Current ratio 1.36 0.87 1.48
Net debt to EBITDA (0.93) (5.82) (0.25)

Dividend

Metric BABA CPNG Internet Retail median
Dividend yield 0.95% — 1.77%
Payout ratio 0.25 — 0.25

Size

Metric BABA CPNG Internet Retail median
Market cap 276.46b 26.59b 406.60m

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