Head to Head Survey: Alibaba Group (NYSE:BABA) vs. Online Vacation Center (OTCMKTS:ONVC)

Online Vacation Center (OTCMKTS:ONVC) and Alibaba Group (NYSE:BABA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Insider and Institutional Ownership

13.5% of Alibaba Group shares are owned by institutional investors. 71.3% of Online Vacation Center shares are owned by company insiders. Comparatively, 12.5% of Alibaba Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Online Vacation Center has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Online Vacation Center and Alibaba Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Online Vacation Center	0	0	0	0	0.00
Alibaba Group	1	2	17	0	2.80

Alibaba Group has a consensus target price of $194.00, indicating a potential upside of 29.26%. Given Alibaba Group’s stronger consensus rating and higher probable upside, analysts clearly believe Alibaba Group is more favorable than Online Vacation Center.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Online Vacation Center	3.00%	N/A	N/A
Alibaba Group	12.38%	10.51%	6.18%

Earnings and Valuation

This table compares Online Vacation Center and Alibaba Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Online Vacation Center	$20.10 million	0.71	$750,000.00	$0.08	24.63
Alibaba Group	$137.30 billion	2.61	$17.93 billion	$7.24	20.73

Alibaba Group has higher revenue and earnings than Online Vacation Center. Alibaba Group is trading at a lower price-to-earnings ratio than Online Vacation Center, indicating that it is currently the more affordable of the two stocks.

Summary

Alibaba Group beats Online Vacation Center on 11 of the 14 factors compared between the two stocks.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.

About Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.