Seek Returns logo

Command Palette

Search for a command to run...

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

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

Company Profile

SymbolBABAHD
Company NameAlibaba Group Holding LimitedThe Home Depot, Inc.
CountryHong KongUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & RetailConsumer Discretionary Distribution & Retail
GICS IndustryBroadline RetailSpecialty Retail
GICS Sub-IndustryBroadline RetailHome Improvement Retail
Market Capitalization336.63 billion USD338.15 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateSeptember 19, 2014September 22, 1981
Security TypeADRCommon Stock

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

BABA’s market capitalization stands at 336.63 billion USD, while HD’s is 338.15 billion USD, indicating their market valuations are broadly comparable.

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

Historical Performance

This chart compares the performance of BABA and HD 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-38.10%
HD+18.45%
BABA vs. HD: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolBABAHD
5-Day Price Return-1.57%0.70%
13-Week Price Return-15.99%-9.49%
26-Week Price Return-17.77%-12.57%
52-Week Price Return17.73%-4.21%
Month-to-Date Return8.74%3.23%
Year-to-Date Return-6.93%-1.34%
10-Day Avg. Volume10.39M3.32M
3-Month Avg. Volume11.25M4.16M
3-Month Volatility37.03%26.68%
Beta0.511.04

HD carries a higher beta at 1.04, indicating it’s more sensitive to market moves, while BABA (beta: 0.51) exhibits greater stability.

Profitability

Return on Equity (TTM)

BABA

9.06%

Broadline Retail Industry
Max
52.86%
Q3
29.34%
Median
16.16%
Q1
8.94%
Min
-20.75%

BABA’s Return on Equity of 9.06% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

HD

130.02%

Specialty Retail Industry
Max
74.25%
Q3
38.47%
Median
20.35%
Q1
11.24%
Min
-3.66%

HD’s Return on Equity of 130.02% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

BABA vs. HD: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Net Profit Margin (TTM)

BABA

9.13%

Broadline Retail Industry
Max
23.01%
Q3
12.87%
Median
9.08%
Q1
4.39%
Min
-7.13%

BABA’s Net Profit Margin of 9.13% is aligned with the median group of its peers in the Broadline Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

HD

8.60%

Specialty Retail Industry
Max
20.72%
Q3
11.17%
Median
6.63%
Q1
2.37%
Min
-2.51%

HD’s Net Profit Margin of 8.60% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

BABA vs. HD: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Operating Profit Margin (TTM)

BABA

7.82%

Broadline Retail Industry
Max
26.71%
Q3
18.18%
Median
11.16%
Q1
7.67%
Min
0.27%

BABA’s Operating Profit Margin of 7.82% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

HD

12.68%

Specialty Retail Industry
Max
32.33%
Q3
15.34%
Median
9.31%
Q1
3.82%
Min
-1.73%

HD’s Operating Profit Margin of 12.68% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

BABA vs. HD: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Profitability at a Glance

SymbolBABAHD
Return on Equity (TTM)9.06%130.02%
Return on Assets (TTM)5.01%13.79%
Net Profit Margin (TTM)9.13%8.60%
Operating Profit Margin (TTM)7.82%12.68%
Gross Profit Margin (TTM)40.75%33.32%

Financial Strength

Current Ratio (MRQ)

BABA

1.33

Broadline Retail Industry
Max
3.72
Q3
2.34
Median
1.48
Q1
1.17
Min
0.69

BABA’s Current Ratio of 1.33 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

HD

1.06

Specialty Retail Industry
Max
3.11
Q3
1.96
Median
1.33
Q1
1.14
Min
0.55

HD’s Current Ratio of 1.06 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

BABA vs. HD: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BABA

0.25

Broadline Retail Industry
Max
2.11
Q3
1.36
Median
0.56
Q1
0.28
Min
0.00

Falling into the lower quartile for the Broadline 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.

HD

4.35

Specialty Retail Industry
Max
3.50
Q3
1.54
Median
0.59
Q1
0.20
Min
0.00

With a Debt-to-Equity Ratio of 4.35, HD operates with exceptionally high leverage compared to the Specialty Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

BABA vs. HD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry
Max
37.34
Q3
21.16
Median
9.56
Q1
4.22
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.

HD

9.13

Specialty Retail Industry
Max
94.41
Q3
45.12
Median
13.62
Q1
4.00
Min
-36.00

HD’s Interest Coverage Ratio of 9.13 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

BABA vs. HD: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Financial Strength at a Glance

SymbolBABAHD
Current Ratio (MRQ)1.331.06
Quick Ratio (MRQ)0.830.26
Debt-to-Equity Ratio (MRQ)0.254.35
Interest Coverage Ratio (TTM)9.569.13

Growth

Revenue Growth

BABA vs. HD: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolBABAHD
Revenue Growth (MRQ vs Prior YoY)1.67%-3.79%
Revenue Growth (TTM vs Prior YoY)3.56%3.24%
3-Year Revenue CAGR5.31%1.52%
5-Year Revenue CAGR14.35%4.51%

EPS Growth

BABA vs. HD: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolBABAHD
EPS Growth (MRQ vs Prior YoY)-66.84%-14.13%
EPS Growth (TTM vs Prior YoY)-22.23%-4.52%
3-Year EPS CAGR33.08%-5.18%
5-Year EPS CAGR-0.85%3.58%

Dividend

Dividend Yield (TTM)

BABA

2.92%

Broadline Retail Industry
Max
5.75%
Q3
2.92%
Median
0.60%
Q1
0.00%
Min
0.00%

BABA’s Dividend Yield of 2.92% is consistent with its peers in the Broadline Retail industry, providing a dividend return that is standard for its sector.

HD

2.70%

Specialty Retail Industry
Max
6.90%
Q3
3.32%
Median
1.14%
Q1
0.00%
Min
0.00%

HD’s Dividend Yield of 2.70% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

BABA vs. HD: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Dividend Payout Ratio (TTM)

BABA

187.88%

Broadline Retail Industry
Max
120.88%
Q3
68.73%
Median
26.68%
Q1
0.00%
Min
0.00%

BABA’s Dividend Payout Ratio of 187.88% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

HD

64.65%

Specialty Retail Industry
Max
169.80%
Q3
88.98%
Median
27.41%
Q1
0.00%
Min
0.00%

HD’s Dividend Payout Ratio of 64.65% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BABA vs. HD: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Dividend at a Glance

SymbolBABAHD
Dividend Yield (TTM)2.92%2.70%
Dividend Payout Ratio (TTM)187.88%64.65%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

23.12

Broadline Retail Industry
Max
47.05
Q3
27.80
Median
22.63
Q1
10.25
Min
6.65

BABA’s P/E Ratio of 23.12 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.

HD

23.91

Specialty Retail Industry
Max
36.88
Q3
26.97
Median
20.53
Q1
12.93
Min
6.32

HD’s P/E Ratio of 23.91 is within the middle range for the Specialty 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.

BABA vs. HD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Price-to-Sales Ratio (TTM)

BABA

2.11

Broadline Retail Industry
Max
6.45
Q3
3.25
Median
1.99
Q1
0.94
Min
0.20

BABA’s P/S Ratio of 2.11 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.

HD

2.06

Specialty Retail Industry
Max
5.12
Q3
2.76
Median
1.13
Q1
0.50
Min
0.09

HD’s P/S Ratio of 2.06 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.

BABA vs. HD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Price-to-Book Ratio (MRQ)

BABA

2.33

Broadline Retail Industry
Max
9.90
Q3
5.55
Median
3.50
Q1
1.79
Min
0.79

BABA’s P/B Ratio of 2.33 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.

HD

29.38

Specialty Retail Industry
Max
16.36
Q3
9.41
Median
4.45
Q1
1.97
Min
0.56

At 29.38, HD’s P/B Ratio is at an extreme premium to the Specialty 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. HD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Specialty Retail industry benchmarks.

Valuation at a Glance

SymbolBABAHD
Price-to-Earnings Ratio (TTM)23.1223.91
Price-to-Sales Ratio (TTM)2.112.06
Price-to-Book Ratio (MRQ)2.3329.38
Price-to-Free Cash Flow Ratio (TTM)215.8126.77