Alibaba Group (NYSE: BABA) and Secoo (NASDAQ:SECO) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Insider and Institutional Ownership
38.0% of Alibaba Group shares are held by institutional investors. Comparatively, 24.8% of Secoo shares are held by institutional investors. 12.5% of Alibaba Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Alibaba Group and Secoo’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alibaba Group||$22.99 billion||19.68||$6.35 billion||$4.09||43.20|
|Secoo||$382.60 million||0.42||-$6.59 million||N/A||N/A|
Alibaba Group has higher revenue and earnings than Secoo.
This is a summary of recent recommendations and price targets for Alibaba Group and Secoo, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alibaba Group presently has a consensus price target of $212.31, indicating a potential upside of 20.17%. Secoo has a consensus price target of $18.00, indicating a potential upside of 45.04%. Given Secoo’s stronger consensus rating and higher probable upside, analysts clearly believe Secoo is more favorable than Alibaba Group.
This table compares Alibaba Group and Secoo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Alibaba Group beats Secoo on 10 of the 12 factors compared between the two stocks.
About Alibaba Group
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).
Secoo Holding Limited is an online integrated platform company. The Company offers an integrated online and offline shopping platform, which consists of its Secoo.com Website, mobile applications and offline experience centers. The Company offers a range of products including watches, bags, clothing, footwear, jewelry, accessories, menswear, children’s wear, sportswear, cosmetics and skin care, automobile, home goods, lifestyle services, lifestyle services and high-end Chinese original products. The Company’s online platform facilitates easy product selection, order processing and convenient payment methods, such as Secoo Check, which allows customers to make payments for its merchandise products in installments on its online platform directly.
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