Comparing Alibaba Group Holding Limited (BABA) and Geeknet (GKNT)
Alibaba Group Holding Limited (NYSE: BABA) and Geeknet (NASDAQ:GKNT) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares Alibaba Group Holding Limited and Geeknet’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||$2.49||67.27|
Alibaba Group Holding Limited has higher revenue and earnings than Geeknet.
This table compares Alibaba Group Holding Limited and Geeknet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alibaba Group Holding Limited||27.51%||15.40%||9.71%|
Institutional and Insider Ownership
36.8% of Alibaba Group Holding Limited shares are held by institutional investors. 12.5% of Alibaba Group Holding Limited shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Alibaba Group Holding Limited and Geeknet, as provided by MarketBeat.
|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, suggesting a potential downside of 7.63%. Given Alibaba Group Holding Limited’s higher possible upside, research analysts plainly believe Alibaba Group Holding Limited is more favorable than Geeknet.
Alibaba Group Holding Limited beats Geeknet on 9 of the 9 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).
Geeknet, Inc. (Geeknet) sells collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers through the ThinkGeek Website and exclusive products to the Company’s wholesale channel customers. The Company has three segments: Website, Wholesale and ThinkGeek Solutions. The ThinkGeek Solutions segment has been aggregated into the Website segment. The Website segment sells geek-themed retail products and video game-themed merchandise through the ThinkGeek Website and through the ThinkGeek Solutions Web-stores. The Wholesale segment sells primarily exclusive GeekLabs (the in-house product development team) products to brick-and-mortar retailers. The Company along with its subsidiaries, operates a business aimed at the global geek community, which includes technology enthusiasts, pop-culture aficionados and other fans. ThinkGeek, Inc. and ThinkGeek Solutions, Inc. are its two wholly owned subsidiaries.
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