Critical Review: Altaba (AABA) and Its Peers
Altaba (NASDAQ: AABA) is one of 547 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its rivals? We will compare Altaba to related companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
79.9% 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, 5.1% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent recommendations for Altaba and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Altaba currently has a consensus target price of $51.69, suggesting a potential downside of 24.33%. As a group, “Closed End Funds” companies have a potential upside of 50.93%. Given Altaba’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Altaba has less favorable growth aspects than its rivals.
Volatility & Risk
Altaba has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Altaba’s rivals have a beta of 0.55, meaning that their average stock price is 45% less volatile than the S&P 500.
This table compares Altaba and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
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||36.53|
|Altaba Competitors||$238.76 million||$44.95 million||300.00|
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.
Altaba rivals beat Altaba on 8 of the 13 factors compared.
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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