Alibaba vs Monster Beverage Which Is a Better Investment?

Alibaba Group Holding Limited (BABA) and Monster Beverage Corporation (MNST) are two prominent companies in the global market. Alibaba, a multinational conglomerate specializing in e-commerce, technology, and retail, has seen significant growth and innovation over the years. On the other hand, Monster Beverage is a leading energy drink manufacturer with a strong presence in the beverage industry. Both companies have experienced fluctuations in their stock performances, making them interesting options for investors looking to diversify their portfolio.

Alibaba or Monster Beverage?

When comparing Alibaba and Monster Beverage, 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 Monster Beverage.

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 Monster Beverage 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, Monster Beverage 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 Monster Beverage's P/E ratio at 35.74. 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 Monster Beverage's P/B ratio is 9.93.

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 Monster Beverage's is 1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 7.07% and Monster Beverage's ROE at 22.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $95.05 for Alibaba and $54.40 for Monster Beverage. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. Monster Beverage's prices fluctuated between $43.32 and $61.23, with a yearly change of 41.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.