Alibaba vs Sea

Alibaba Group Holding Limited and Sea Limited are two major players in the e-commerce industry, with both companies experiencing significant growth in recent years. Alibaba, often referred to as the "Amazon of China," is one of the largest e-commerce companies in the world, offering a wide range of products and services. Sea Limited, on the other hand, is a fast-growing internet company based in Southeast Asia, known for its popular e-commerce platform Shopee. Both companies have seen their stocks perform well in the market, attracting investors looking to capitalize on the booming e-commerce sector. In this article, we will compare and analyze the performance of Alibaba and Sea stocks, examining their financials, growth prospects, and market position.

Alibaba or Sea?

When comparing Alibaba and Sea, 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 Sea.

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 0.36%, while Sea 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, Sea 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 24.97 and Sea's P/E ratio at -283.40. 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 1.87 while Sea's P/B ratio is 8.10.

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 Sea's is 8.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 7.07% and Sea's ROE at -2.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $101.64 for Alibaba and $96.44 for Sea. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. Sea's prices fluctuated between $34.35 and $101.01, with a yearly change of 194.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.