Coupang vs Alibaba Which Is More Profitable?

Coupang and Alibaba are two prominent e-commerce giants in the global market, each holding substantial influence and value within the industry. Coupang, a South Korean company, has been gaining attention for its rapid growth and innovative business model. On the other hand, Alibaba, a Chinese conglomerate, has established itself as a dominant force in the e-commerce sector with its diverse range of services and extensive market reach. Both companies offer investment opportunities with potential for growth, but they also face competition and challenges in their respective markets.

Coupang or Alibaba?

When comparing Coupang and Alibaba, 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 Coupang and Alibaba.

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. Coupang has a dividend yield of -%, while Alibaba has a dividend yield of 0.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.58%.

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 Coupang P/E ratio at 42.15 and Alibaba's P/E ratio at 23.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coupang P/B ratio is 10.30 while Alibaba's P/B ratio is 1.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coupang has seen a 5-year revenue growth of 4.40%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.27% and Alibaba's ROE at 7.07%.

Retail Investors:

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