Alibaba vs Coupang Which Is More Favorable?

Alibaba and Coupang are two prominent e-commerce companies that have captured the attention of investors worldwide. Alibaba, the Chinese giant, has dominated the market with its extensive range of products and services, while Coupang, the South Korean newcomer, has quickly risen to prominence with its innovative delivery and logistics systems. Both stocks have experienced volatility and growth, making them attractive options for investors seeking exposure to the booming e-commerce sector. The battle between Alibaba and Coupang stocks is one to watch closely as these tech giants continue to compete for market share and investor confidence.

Alibaba or Coupang?

When comparing Alibaba and Coupang, 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 Coupang.

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 0.38%, while Coupang 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 25.58%. On the other hand, Coupang 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 23.68 and Coupang's P/E ratio at 42.15. 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 1.78 while Coupang's P/B ratio is 10.30.

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 Coupang's is 4.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 7.07% and Coupang's ROE at 25.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $95.05 for Alibaba and $23.61 for Coupang. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. Coupang's prices fluctuated between $13.51 and $26.91, with a yearly change of 99.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.