Comparing Alibaba Group (NYSE:BABA) & RB Global (NYSE:RBA)

Alibaba Group (NYSE:BABA) and RB Global (NYSE:RBA) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Alibaba Group and RB Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alibaba Group	0	0	14	1	3.07
RB Global	0	1	5	0	2.83

Alibaba Group presently has a consensus target price of $144.07, suggesting a potential downside of 2.37%. RB Global has a consensus target price of $107.64, suggesting a potential upside of 9.86%. Given RB Global’s higher possible upside, analysts clearly believe RB Global is more favorable than Alibaba Group.

Volatility and Risk

Alibaba Group has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

13.5% of Alibaba Group shares are held by institutional investors. Comparatively, 95.4% of RB Global shares are held by institutional investors. 12.5% of Alibaba Group shares are held by company insiders. Comparatively, 4.3% of RB Global shares are held 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.

Dividends

Alibaba Group pays an annual dividend of $0.98 per share and has a dividend yield of 0.7%. RB Global pays an annual dividend of $1.16 per share and has a dividend yield of 1.2%. Alibaba Group pays out 14.2% of its earnings in the form of a dividend. RB Global pays out 57.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RB Global has increased its dividend for 20 consecutive years. RB Global is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Alibaba Group and RB Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alibaba Group	12.29%	12.89%	7.69%
RB Global	9.64%	8.00%	3.45%

Earnings & Valuation

This table compares Alibaba Group and RB Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alibaba Group	$981.77 billion	0.36	$11.08 billion	$6.92	21.32
RB Global	$4.28 billion	4.22	$206.50 million	$2.01	48.75

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

Summary

Alibaba Group beats RB Global on 11 of the 18 factors compared between the two stocks.

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.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.