Critical Analysis: Altaba (AABA) and Its Rivals

Altaba (NASDAQ: AABA) is one of 547 public companies in the “Closed End Funds” industry, but how does it contrast to its rivals? We will compare Altaba to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

77.6% of Altaba shares are owned by institutional investors. Comparatively, 23.5% of shares of all “Closed End Funds” companies are owned by institutional investors. 24.0% of Altaba shares are owned by company insiders. Comparatively, 4.2% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Altaba and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Altaba $5.17 billion -$214.32 million -3,503.25
Altaba Competitors $238.92 million $43.96 million 211.89

Altaba has higher revenue, but lower earnings than its rivals. Altaba is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Altaba has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Altaba’s rivals have a beta of 0.55, suggesting that their average stock price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Altaba and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altaba 0 12 7 0 2.37
Altaba Competitors 236 1575 1937 33 2.47

Altaba currently has a consensus target price of $51.69, suggesting a potential downside of 26.27%. As a group, “Closed End Funds” companies have a potential upside of 56.50%. Given Altaba’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Altaba has less favorable growth aspects than its rivals.

Profitability

This table compares Altaba and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altaba -0.29% 0.77% 0.50%
Altaba Competitors -16.03% 7.58% 5.78%

Summary

Altaba rivals beat Altaba on 7 of the 13 factors compared.

About Altaba

Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.

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