APP vs. BABA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and BABA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BABA’s market capitalization of 259.33 billion USD is significantly greater than APP’s 115.62 billion USD, highlighting its more substantial market valuation.
APP’s beta of 2.53 points to significantly higher volatility compared to BABA (beta: 0.21), suggesting APP has greater potential for both gains and losses relative to market movements.
BABA is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. APP, on the other hand, is a domestic entity.
| Symbol | APP | BABA |
|---|---|---|
| Company Name | AppLovin Corporation | Alibaba Group Holding Limited |
| Country | US | CN |
| Sector | Technology | Consumer Cyclical |
| Industry | Software - Application | Specialty Retail |
| CEO | Adam Arash Foroughi | Yongming Wu |
| Price | 341.64 USD | 108.7 USD |
| Market Cap | 115.62 billion USD | 259.33 billion USD |
| Beta | 2.53 | 0.21 |
| Exchange | NASDAQ | NYSE |
| IPO Date | April 15, 2021 | September 19, 2014 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of APP and BABA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
BABA
13.33%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
BABA’s Return on Equity of 13.33% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
BABA
7.90%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
BABA’s Return on Invested Capital of 7.90% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
BABA
13.06%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
A Net Profit Margin of 13.06% places BABA in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
BABA
14.14%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
An Operating Profit Margin of 14.14% places BABA in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | APP | BABA |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 13.33% |
| Return on Assets (TTM) | 33.64% | 7.21% |
| Return on Invested Capital (TTM) | 48.77% | 7.90% |
| Net Profit Margin (TTM) | 37.39% | 13.06% |
| Operating Profit Margin (TTM) | 42.86% | 14.14% |
| Gross Profit Margin (TTM) | 77.40% | 39.95% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
BABA
1.55
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
BABA’s Current Ratio of 1.55 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
BABA
0.25
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
Falling into the lower quartile for the Specialty Retail industry, BABA’s Debt-to-Equity Ratio of 0.25 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
BABA
19.85
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
BABA’s Interest Coverage Ratio of 19.85 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | APP | BABA |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.55 |
| Quick Ratio (TTM) | 1.68 | 1.55 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 0.25 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.14 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | 0.55 |
| Interest Coverage Ratio (TTM) | 7.41 | 19.85 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and BABA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
BABA
1.87%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.87%, BABA offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
BABA
22.23%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BABA’s Dividend Payout Ratio of 22.23% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | APP | BABA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.87% |
| Dividend Payout Ratio (TTM) | 0.00% | 22.23% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
BABA
1.79
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
BABA’s P/E Ratio of 1.79 is below the typical range for the Specialty Retail industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
BABA
0.17
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
In the lower quartile for the Specialty Retail industry, BABA’s Forward PEG Ratio of 0.17 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
BABA
1.84
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
BABA’s P/S Ratio of 1.84 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
BABA
0.23
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
BABA’s P/B Ratio of 0.23 is below the established floor for the Specialty Retail industry. This may signal that the market is deeply pessimistic or has overlooked the company, potentially offering its asset base at a significant discount.
Valuation at a Glance
| Symbol | APP | BABA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 1.79 |
| Forward PEG Ratio (TTM) | 2.46 | 0.17 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 1.84 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 0.23 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 28.06 |
| EV-to-EBITDA (TTM) | 45.16 | 10.31 |
| EV-to-Sales (TTM) | 23.13 | 1.95 |