Alibaba vs Toto Which Performs Better?

Alibaba Group Holding Ltd. and Toto Ltd. are two prominent companies in the Asian market, each with their own unique strengths and challenges. Alibaba, known for its e-commerce platform and diverse range of services, has quickly become a global powerhouse in the tech industry. On the other hand, Toto is a well-established Japanese company with a strong presence in the sanitation industry. Both stocks have seen fluctuations in the market, making them intriguing options for investors looking to diversify their portfolios.

Alibaba or Toto?

When comparing Alibaba and Toto, 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 Toto.

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 2.97%, while Toto has a dividend yield of 0.01%. 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, Toto reports a 5-year dividend growth of 132.90% 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 18.46 and Toto's P/E ratio at 17.31. 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 1.67 while Toto's P/B ratio is 1.36.

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 Toto's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alibaba's ROE at 8.88% and Toto's ROE at 8.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.00 for Alibaba and $26.98 for Toto. Over the past year, Alibaba's prices ranged from $66.63 to $117.82, with a yearly change of 76.83%. Toto's prices fluctuated between $22.57 and $37.75, with a yearly change of 67.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.