Alibaba vs AL Which Performs Better?

Alibaba Group Holding Limited and Air Lease Corporation (AL) are two distinct entities in the financial market. Alibaba is a leading Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology, while Air Lease Corporation is a prominent aircraft leasing company. Both have had significant impacts on the stock market, with Alibaba being a powerhouse in the tech industry and AL being a major player in the aviation sector. Understanding the dynamics and performance of these stocks is crucial for investors looking to diversify their portfolios.

Alibaba or AL?

When comparing Alibaba and AL, 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 Alibaba and AL.

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. Alibaba has a dividend yield of 3.01%, while AL has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%. On the other hand, AL 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 Alibaba P/E ratio at 18.25 and AL's P/E ratio at -15.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alibaba P/B ratio is 1.65 while AL's P/B ratio is -36.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alibaba has seen a 5-year revenue growth of 2.38%, while AL's is -0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 8.88% and AL's ROE at 166.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $87.24 for Alibaba and HK$0.57 for AL. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. AL's prices fluctuated between HK$0.48 and HK$0.98, with a yearly change of 104.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.