Qiwi (NASDAQ:QIWI) and Alibaba Group (NYSE:BABA) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
This is a summary of recent recommendations and price targets for Qiwi and Alibaba Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qiwi presently has a consensus target price of $20.00, suggesting a potential downside of 1.38%. Alibaba Group has a consensus target price of $223.00, suggesting a potential upside of 28.95%. Given Alibaba Group’s higher possible upside, analysts plainly believe Alibaba Group is more favorable than Qiwi.
Earnings and Valuation
This table compares Qiwi and Alibaba Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Qiwi||$441.00 million||2.80||$56.99 million||$0.96||21.13|
|Alibaba Group||$56.15 billion||7.84||$13.10 billion||$3.59||48.17|
Alibaba Group has higher revenue and earnings than Qiwi. Qiwi is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
27.3% of Qiwi shares are owned by institutional investors. Comparatively, 43.4% of Alibaba Group shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Qiwi pays an annual dividend of $1.04 per share and has a dividend yield of 5.1%. Alibaba Group does not pay a dividend. Qiwi pays out 108.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Qiwi and Alibaba Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Qiwi has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500.
Alibaba Group beats Qiwi on 13 of the 15 factors compared between the two stocks.
Qiwi plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, the United Arab Emirates, and internationally. The company offers payment services across online, mobile, and physical channels through a network of approximately 109,000 kiosks and 43,000 terminals that run its proprietary software. It also provides Qiwi Wallet, which is an online and mobile payment processing, and money transfer system that allows customers to pay for the products and services of merchants, as well as perform peer-to-peer money transfers through a virtual wallet; and Visa-branded prepaid cards. In addition, the company offers payment-by installments card systems under the SOVEST brand name; and value added services. Qiwi plc was incorporated in 2007 and is based in Nicosia, Cyprus.
About Alibaba Group
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform for brands and retailers; Rural Taobao program that enables rural residents and businesses to sell agricultural products to urban consumers; 1688.com, an online wholesale marketplace; Alibaba.com, an online wholesale marketplace; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Lingshoutong, a digital sourcing platform. The company also provides pay-for-performance and display marketing services; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange in China; and digital payment and financial technology platform services. In addition, it offers cloud computing services, including elastic computing, database, storage, virtualization network, large scale computing, security, and management and application services, big data analytics, a machine learning platform, and Internet of Things and other service for enterprises; and payment and escrow services; and movies, TV drama series, online dramas, variety shows, news feeds, games, literature and music, and other areas through various content platforms, as well as develops and operates mobile browsers. Further, the company provides AutoNavi, a mobile digital map, navigation, and real-time traffic information; DingTalk, a proprietary enterprise communication and collaboration platform; and Tmall Genie, an AI-powered voice assistant, which helps consumers to shop, order local services, search for information, control smart appliances, and play interactive content. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.
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