Toto vs Alibaba Which Is More Lucrative?

Toto Ltd. and Alibaba Group Holding Ltd. are two well-known companies in the stock market. Toto is a Japanese multinational company specializing in plumbing products, while Alibaba is a Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. Both companies have experienced significant growth and success in recent years, but their stocks have performed differently. In this comparison, we will analyze the financial performance of Toto and Alibaba stocks to determine which investment may be more favorable for potential investors.

Toto or Alibaba?

When comparing Toto 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 Toto 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. Toto has a dividend yield of 0.02%, while Alibaba has a dividend yield of 3.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Toto reports a 5-year dividend growth of 132.90% 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 54.40%.

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 Toto P/E ratio at 16.90 and Alibaba's P/E ratio at 18.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Toto P/B ratio is 1.33 while Alibaba's P/B ratio is 1.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Toto has seen a 5-year revenue growth of 0.18%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toto's ROE at 8.11% and Alibaba's ROE at 8.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.04 for Toto and $87.24 for Alibaba. Over the past year, Toto's prices ranged from $22.57 to $37.75, with a yearly change of 67.26%. 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.