Alibaba Group Holding Limited (NYSE: BABA) and Points International (NASDAQ:PCOM) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.
Insider and Institutional Ownership
36.8% of Alibaba Group Holding Limited shares are owned by institutional investors. Comparatively, 37.9% of Points International shares are owned by institutional investors. 12.5% of Alibaba Group Holding Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Alibaba Group Holding Limited and Points International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alibaba Group Holding Limited||28.77%||17.42%||10.98%|
This is a summary of recent ratings for Alibaba Group Holding Limited and Points International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alibaba Group Holding Limited||1||2||29||1||2.91|
Alibaba Group Holding Limited presently has a consensus price target of $154.72, indicating a potential downside of 7.63%. Points International has a consensus price target of $13.50, indicating a potential upside of 54.64%. Given Points International’s stronger consensus rating and higher possible upside, analysts clearly believe Points International is more favorable than Alibaba Group Holding Limited.
Volatility and Risk
Alibaba Group Holding Limited has a beta of 2.64, meaning that its stock price is 164% more volatile than the S&P 500. Comparatively, Points International has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Earnings & Valuation
This table compares Alibaba Group Holding Limited and Points International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alibaba Group Holding Limited||$23.57 billion||17.98||$9.40 billion||$2.88||58.16|
|Points International||$332.82 million||0.38||$9.00 million||($0.11)||-79.36|
Alibaba Group Holding Limited has higher revenue and earnings than Points International. Points International is trading at a lower price-to-earnings ratio than Alibaba Group Holding Limited, indicating that it is currently the more affordable of the two stocks.
Alibaba Group Holding Limited beats Points International on 12 of the 15 factors compared between the two stocks.
About Alibaba Group Holding Limited
Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).
About Points International
Points International Ltd. (Points) provides a range of e-commerce and technology services to loyalty program operators using a common infrastructure. These services include a range of white label or private branded e-commerce services (Loyalty Currency Services) that enable the sale of loyalty currencies (such as frequent flyer miles, hotel points and credit card points), both retail and wholesale, and support the loyalty program consumer offerings and their back end operations. The Company offers the consumer-focused Points Loyalty Wallet that allows users to track, manage and access multiple loyalty rewards programs through the Points.com Website. It also offers Points Travel, which is private label travel e-commerce platform designed specifically for the loyalty industry. The Company operates the PointsHound.com Website, a hotel booking engine and loyalty currency aggregator built specifically for frequent travelers.
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