Alibaba Group (NYSE:BABA – Get Free Report) and Future FinTech Group (NASDAQ:FTFT – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Risk and Volatility
Alibaba Group has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Future FinTech Group has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Earnings & Valuation
This table compares Alibaba Group and Future FinTech Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alibaba Group | $137.30 billion | 2.37 | $17.93 billion | $7.24 | 18.86 |
| Future FinTech Group | $2.16 million | 3.18 | -$32.96 million | ($53.52) | -0.03 |
Alibaba Group has higher revenue and earnings than Future FinTech Group. Future FinTech Group is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alibaba Group and Future FinTech Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alibaba Group | 12.38% | 10.51% | 6.18% |
| Future FinTech Group | -1,038.07% | -303.80% | -192.64% |
Institutional and Insider Ownership
13.5% of Alibaba Group shares are owned by institutional investors. Comparatively, 0.2% of Future FinTech Group shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by insiders. Comparatively, 1.5% of Future FinTech Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Alibaba Group and Future FinTech Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alibaba Group | 1 | 3 | 16 | 0 | 2.75 |
| Future FinTech Group | 1 | 0 | 0 | 0 | 1.00 |
Alibaba Group currently has a consensus price target of $195.17, indicating a potential upside of 42.97%. Given Alibaba Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Alibaba Group is more favorable than Future FinTech Group.
Summary
Alibaba Group beats Future FinTech Group on 12 of the 14 factors compared between the two stocks.
About Alibaba Group
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.
About Future FinTech Group
Future FinTech Group Inc., through its subsidiaries, operates online shopping platforms in People’s Republic of China. It operates in three segments: Supply Chain Financing Service and Trading Business, Asset Management Service, and Others. The company offers cross-border money transfer service, brokerage and investment banking, and cryptocurrency mining farm business. It also engages in the trading of coal, aluminum ingots, sand, and steel; and E-commerce, digital wallet safety management, blockchain code auditing and operations, cryptocurrency mining, metaverse and big data maintenance services. The company was formerly known as SkyPeople Fruit Juice, Inc. and changed its name to Future FinTech Group Inc. in June 2017. Future FinTech Group Inc. is headquartered in New York, New York.
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