ALi vs Amazon.com Which Is More Reliable?

AliBaba Group Holding Ltd. (ALi) and Amazon.com Inc. are two of the largest e-commerce companies in the world. As competitors in the global market, their stocks have become a point of interest for investors looking to capitalize on the growth of online retail. ALi, based in China, has seen strong gains in recent years, while Amazon, headquartered in the US, has long been a dominant force in the industry. Both companies have experienced fluctuations in their stock prices, making them intriguing options for those seeking to diversify their portfolios.

ALi or Amazon.com?

When comparing ALi and Amazon.com, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ALi and Amazon.com.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ALi has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ALi reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ALi P/E ratio at -3.22 and Amazon.com's P/E ratio at 48.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ALi P/B ratio is 2.84 while Amazon.com's P/B ratio is 9.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ALi has seen a 5-year revenue growth of -0.42%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALi's ROE at -84.60% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$33.80 for ALi and $226.26 for Amazon.com. Over the past year, ALi's prices ranged from NT$26.40 to NT$57.67, with a yearly change of 118.43%. Amazon.com's prices fluctuated between $144.05 and $231.20, with a yearly change of 60.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.