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

Updated on October 4, 2025

Here’s a clear look at BABA and COST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

BABA trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, COST is a standard domestic listing.

Symbol	BABA	COST
Company Name	Alibaba Group Holding Limited	Costco Wholesale Corporation
Country	Hong Kong	United States
GICS Sector	Consumer Discretionary	Consumer Staples
GICS Industry	Broadline Retail	Consumer Staples Distribution & Retail
Market Capitalization	435.84 billion USD	406.60 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	September 19, 2014	July 9, 1986
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of BABA and COST 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.

BABA vs. COST: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	BABA	COST
5-Day Price Return	4.17%	-2.08%
13-Week Price Return	60.38%	-6.50%
26-Week Price Return	34.76%	-0.44%
52-Week Price Return	72.24%	4.52%
Month-to-Date Return	2.27%	-1.88%
Year-to-Date Return	115.57%	1.02%
10-Day Avg. Volume	21.92M	3.12M
3-Month Avg. Volume	16.44M	2.22M
3-Month Volatility	49.36%	15.94%
Beta	0.31	0.98

Profitability

Return on Equity (TTM)

BABA

14.91%

Broadline Retail Industry

Max: 47.53%
Q3: 31.20%
Median: 16.63%
Q1: 10.81%
Min: -7.57%

BABA’s Return on Equity of 14.91% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

COST

30.47%

Consumer Staples Distribution & Retail Industry

Max: 36.53%
Q3: 21.48%
Median: 13.14%
Q1: 8.11%
Min: -9.87%

In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 30.47% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

BABA vs. COST: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Net Profit Margin (TTM)

BABA

14.82%

Broadline Retail Industry

Max: 24.63%
Q3: 12.77%
Median: 8.63%
Q1: 4.50%
Min: -1.62%

A Net Profit Margin of 14.82% places BABA in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.

COST

2.94%

Consumer Staples Distribution & Retail Industry

Max: 7.25%
Q3: 3.98%
Median: 2.77%
Q1: 1.73%
Min: -0.70%

COST’s Net Profit Margin of 2.94% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

BABA vs. COST: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Operating Profit Margin (TTM)

BABA

13.98%

Broadline Retail Industry

Max: 27.48%
Q3: 17.60%
Median: 10.82%
Q1: 7.76%
Min: -6.73%

BABA’s Operating Profit Margin of 13.98% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

COST

3.77%

Consumer Staples Distribution & Retail Industry

Max: 9.42%
Q3: 5.61%
Median: 4.18%
Q1: 2.72%
Min: 0.23%

COST’s Operating Profit Margin of 3.77% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

BABA vs. COST: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Profitability at a Glance

Symbol	BABA	COST
Return on Equity (TTM)	14.91%	30.47%
Return on Assets (TTM)	8.16%	10.83%
Net Profit Margin (TTM)	14.82%	2.94%
Operating Profit Margin (TTM)	13.98%	3.77%
Gross Profit Margin (TTM)	41.18%	12.84%

Financial Strength

Current Ratio (MRQ)

BABA

1.45

Broadline Retail Industry

Max: 3.54
Q3: 2.42
Median: 1.38
Q1: 1.20
Min: 0.69

BABA’s Current Ratio of 1.45 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

COST

1.03

Consumer Staples Distribution & Retail Industry

Max: 1.76
Q3: 1.28
Median: 0.98
Q1: 0.82
Min: 0.49

COST’s Current Ratio of 1.03 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.

BABA vs. COST: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BABA

0.23

Broadline Retail Industry

Max: 2.01
Q3: 1.31
Median: 0.72
Q1: 0.32
Min: 0.00

Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.23 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

COST

0.20

Consumer Staples Distribution & Retail Industry

Max: 3.61
Q3: 1.64
Median: 1.00
Q1: 0.30
Min: 0.00

Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.20 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

BABA vs. COST: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry

Max: 37.34
Q3: 21.16
Median: 8.60
Q1: 3.22
Min: -19.29

BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.

COST

91.27

Consumer Staples Distribution & Retail Industry

Max: 24.36
Q3: 13.75
Median: 5.79
Q1: 3.04
Min: -5.51

With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.

BABA vs. COST: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Financial Strength at a Glance

Symbol	BABA	COST
Current Ratio (MRQ)	1.45	1.03
Quick Ratio (MRQ)	0.97	0.55
Debt-to-Equity Ratio (MRQ)	0.23	0.20
Interest Coverage Ratio (TTM)	9.56	91.27

Growth

Revenue Growth

BABA vs. COST: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BABA vs. COST: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BABA

1.88%

Broadline Retail Industry

Max: 4.06%
Q3: 2.07%
Median: 0.37%
Q1: 0.00%
Min: 0.00%

BABA’s Dividend Yield of 1.88% is consistent with its peers in the Broadline Retail industry, providing a dividend return that is standard for its sector.

COST

0.54%

Consumer Staples Distribution & Retail Industry

Max: 6.08%
Q3: 3.33%
Median: 1.77%
Q1: 0.00%
Min: 0.00%

COST’s Dividend Yield of 0.54% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.

BABA vs. COST: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Dividend Payout Ratio (TTM)

BABA

103.01%

Broadline Retail Industry

Max: 114.82%
Q3: 62.39%
Median: 28.55%
Q1: 0.00%
Min: 0.00%

BABA’s Dividend Payout Ratio of 103.01% is in the upper quartile for the Broadline 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.

COST

34.59%

Consumer Staples Distribution & Retail Industry

Max: 172.48%
Q3: 103.93%
Median: 54.70%
Q1: 24.82%
Min: 0.00%

COST’s Dividend Payout Ratio of 34.59% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BABA vs. COST: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Dividend at a Glance

Symbol	BABA	COST
Dividend Yield (TTM)	1.88%	0.54%
Dividend Payout Ratio (TTM)	103.01%	34.59%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

20.82

Broadline Retail Industry

Max: 62.76
Q3: 32.50
Median: 17.65
Q1: 12.08
Min: 6.87

BABA’s P/E Ratio of 20.82 is within the middle range for the Broadline Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

COST

50.20

Consumer Staples Distribution & Retail Industry

Max: 47.99
Q3: 30.23
Median: 22.19
Q1: 16.85
Min: 4.52

At 50.20, COST’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Consumer Staples Distribution & Retail industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

BABA vs. COST: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Price-to-Sales Ratio (TTM)

BABA

3.08

Broadline Retail Industry

Max: 5.19
Q3: 3.25
Median: 2.13
Q1: 1.01
Min: 0.21

BABA’s P/S Ratio of 3.08 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

COST

1.48

Consumer Staples Distribution & Retail Industry

Max: 1.79
Q3: 0.96
Median: 0.53
Q1: 0.37
Min: 0.06

COST’s P/S Ratio of 1.48 is in the upper echelon for the Consumer Staples Distribution & Retail 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 vs. COST: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Price-to-Book Ratio (MRQ)

BABA

1.90

Broadline Retail Industry

Max: 8.81
Q3: 5.19
Median: 3.42
Q1: 1.75
Min: 0.73

BABA’s P/B Ratio of 1.90 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

COST

14.34

Consumer Staples Distribution & Retail Industry

Max: 8.68
Q3: 4.97
Median: 2.98
Q1: 1.86
Min: 0.46

At 14.34, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

BABA vs. COST: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Consumer Staples Distribution & Retail industry benchmarks.

Valuation at a Glance

Symbol	BABA	COST
Price-to-Earnings Ratio (TTM)	20.82	50.20
Price-to-Sales Ratio (TTM)	3.08	1.48
Price-to-Book Ratio (MRQ)	1.90	14.34
Price-to-Free Cash Flow Ratio (TTM)	39.82	51.88