Comparing Grab (NASDAQ:GRAB) and Alibaba Group (NYSE:BABA)

Grab (NASDAQ:GRABGet Rating) and Alibaba Group (NYSE:BABAGet Rating) are both large-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Grab and Alibaba Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grab -222.20% -32.22% -22.54%
Alibaba Group 0.88% 10.61% 6.70%

Valuation and Earnings

This table compares Grab and Alibaba Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grab $675.00 million 20.40 -$3.45 billion N/A N/A
Alibaba Group $134.57 billion 2.36 $9.82 billion $0.40 299.66

Alibaba Group has higher revenue and earnings than Grab.

Analyst Ratings

This is a summary of current ratings and price targets for Grab and Alibaba Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grab 1 4 9 0 2.57
Alibaba Group 0 0 13 1 3.07

Grab presently has a consensus target price of $4.83, suggesting a potential upside of 31.38%. Alibaba Group has a consensus target price of $144.80, suggesting a potential upside of 20.81%. Given Grab’s higher possible upside, equities research analysts clearly believe Grab is more favorable than Alibaba Group.

Institutional and Insider Ownership

46.6% of Grab shares are held by institutional investors. Comparatively, 13.9% of Alibaba Group shares are held by institutional investors. 3.6% of Grab shares are held by insiders. Comparatively, 12.5% of Alibaba Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Grab has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Summary

Alibaba Group beats Grab on 9 of the 13 factors compared between the two stocks.

About Grab

(Get Rating)

Grab Holdings Limited provides superapps that allows access to mobility, delivery, financial services, and enterprise offerings through its mobile application in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company is headquartered in Singapore.

About Alibaba Group

(Get Rating)

Alibaba Group Holding Ltd. engages in providing technology infrastructure and marketing reach. It operates through the following business segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments. The Core Commerce segment consists of platforms operating in retail and wholesale. The China Commerce segment includes China commerce retail and wholesale businesses. The International Commerce segment focuses on international commerce retail and wholesale businesses. The Local Consumer Services segment is involved in “”To-Home”” businesses, which include Ele.me, local services and delivery platform, and Taoxianda, and “”To-Destination”” segment businesses which include Amap, the provider of mobile digital map, navigation and real-time traffic information, and restaurant and local services guide platform. The Cainiao segment has Cainiao Network and offers domestic and international one-stop-shop logistics services and supply chain management solution. The Cloud segment includes Alibaba Cloud and DingTalk. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is head

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