Sea vs Alibaba

Sea Limited and Alibaba are two of the most prominent e-commerce companies in Asia, with both firms experiencing significant growth in recent years. Sea Limited, based in Singapore, focuses on e-commerce, digital entertainment, and financial services. On the other hand, Alibaba, headquartered in China, is a giant in the global e-commerce market. Investors are often torn between these two stocks, as both companies offer unique growth opportunities and challenges. This article will delve into the key differences and similarities between Sea Limited and Alibaba stocks.

Sea or Alibaba?

When comparing Sea 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 Sea 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. Sea has a dividend yield of -%, while Alibaba has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sea 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 Sea P/E ratio at -283.40 and Alibaba's P/E ratio at 24.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sea P/B ratio is 8.10 while Alibaba's P/B ratio is 1.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sea has seen a 5-year revenue growth of 8.45%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sea's ROE at -2.95% and Alibaba's ROE at 7.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $96.44 for Sea and $101.64 for Alibaba. Over the past year, Sea's prices ranged from $34.35 to $101.01, with a yearly change of 194.06%. 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.