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APP vs. BABA: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at APP and BABA, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

BABA stands out with 295.92 billion USD in market value—about 2.44× APP’s market cap of 121.26 billion USD.

APP’s beta of 2.39 points to much larger expected swings compared to BABA’s calmer 0.24, suggesting both higher upside and downside potential.

BABA is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike APP, which is purely domestic.

SymbolAPPBABA
Company NameAppLovin CorporationAlibaba Group Holding Limited
CountryUSCN
SectorTechnologyConsumer Cyclical
IndustrySoftware - ApplicationSpecialty Retail
CEOMr. Adam Arash ForoughiMr. Yongming Wu
Price358.35 USD123.59 USD
Market Cap121.26 billion USD295.92 billion USD
Beta2.390.24
ExchangeNASDAQNYSE
IPO DateApril 15, 2021September 19, 2014
ADRNoYes

Performance Comparison

This chart compares the performance of APP and BABA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

For a detailed comparison of valuation metrics between APP and BABA, please refer to the table below.

SymbolAPPBABA
Price-to-Earnings Ratio (P/E, TTM)63.4316.85
Forward PEG Ratio (TTM)2.431.52
Price-to-Sales Ratio (P/S, TTM)23.612.14
Price-to-Book Ratio (P/B, TTM)211.642.03
Price-to-Free Cash Flow Ratio (P/FCF, TTM)47.8715.43
EV-to-EBITDA (TTM)47.3012.80
EV-to-Sales (TTM)24.232.21
EV-to-Free Cash Flow (TTM)49.1215.93

Dividend Comparison

APP offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while BABA provides a 1.26% dividend yield, giving investors a steady income stream.

SymbolAPPBABA
Dividend Yield (TTM)0.00%1.26%

Financial Strength Metrics Comparison

This section dives into the financial resilience of APP and BABA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • APP is heavily leveraged (debt-to-equity ratio 6.45), which can boost returns but raises risk if borrowing costs climb, while BABA at 0.23 keeps leverage at a more moderate level.
SymbolAPPBABA
Current Ratio (TTM)1.681.48
Quick Ratio (TTM)1.681.48
Debt-to-Equity Ratio (TTM)6.450.23
Debt-to-Assets Ratio (TTM)0.650.12
Interest Coverage Ratio (TTM)7.418.49