Seek Returns logo

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

Updated on

Here’s a clear look at BABA and SMCI, 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, SMCI is a standard domestic listing.

SymbolBABASMCI
Company NameAlibaba Group Holding LimitedSuper Micro Computer, Inc.
CountryHong KongUnited States
GICS SectorConsumer DiscretionaryInformation Technology
GICS IndustryBroadline RetailTechnology Hardware, Storage & Peripherals
Market Capitalization434.16 billion USD32.46 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 19, 2014March 29, 2007
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of BABA and SMCI 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. SMCI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBABASMCI
5-Day Price Return4.75%13.93%
13-Week Price Return76.17%15.94%
26-Week Price Return41.09%55.83%
52-Week Price Return65.92%31.46%
Month-to-Date Return4.75%13.93%
Year-to-Date Return120.80%79.20%
10-Day Avg. Volume21.15M31.00M
3-Month Avg. Volume16.68M35.18M
3-Month Volatility48.99%61.12%
Beta0.311.52

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.

SMCI

16.92%

Technology Hardware, Storage & Peripherals Industry

Max
56.93%
Q3
27.52%
Median
9.18%
Q1
5.14%
Min
-1.04%

SMCI’s Return on Equity of 16.92% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

BABA vs. SMCI: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals 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.

SMCI

4.77%

Technology Hardware, Storage & Peripherals Industry

Max
16.15%
Q3
7.95%
Median
4.80%
Q1
2.20%
Min
-0.29%

SMCI’s Net Profit Margin of 4.77% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

BABA vs. SMCI: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals 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.

SMCI

5.56%

Technology Hardware, Storage & Peripherals Industry

Max
20.70%
Q3
10.74%
Median
6.27%
Q1
4.07%
Min
1.97%

SMCI’s Operating Profit Margin of 5.56% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.

BABA vs. SMCI: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolBABASMCI
Return on Equity (TTM)14.91%16.92%
Return on Assets (TTM)8.16%9.25%
Net Profit Margin (TTM)14.82%4.77%
Operating Profit Margin (TTM)13.98%5.56%
Gross Profit Margin (TTM)41.18%11.06%

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.

SMCI

5.25

Technology Hardware, Storage & Peripherals Industry

Max
3.37
Q3
2.04
Median
1.41
Q1
0.98
Min
0.11

SMCI’s Current Ratio of 5.25 is exceptionally high, placing it well outside the typical range for the Technology Hardware, Storage & Peripherals industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

BABA vs. SMCI: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals 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.

SMCI

0.76

Technology Hardware, Storage & Peripherals Industry

Max
1.54
Q3
0.85
Median
0.32
Q1
0.11
Min
0.00

SMCI’s Debt-to-Equity Ratio of 0.76 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

BABA vs. SMCI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals 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.

SMCI

21.34

Technology Hardware, Storage & Peripherals Industry

Max
143.63
Q3
76.01
Median
19.47
Q1
5.91
Min
-23.93

SMCI’s Interest Coverage Ratio of 21.34 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

BABA vs. SMCI: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolBABASMCI
Current Ratio (MRQ)1.455.25
Quick Ratio (MRQ)0.973.15
Debt-to-Equity Ratio (MRQ)0.230.76
Interest Coverage Ratio (TTM)9.5621.34

Growth

Revenue Growth

BABA vs. SMCI: 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. SMCI: 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

1.79%

Broadline Retail Industry

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

BABA’s Dividend Yield of 1.79% is consistent with its peers in the Broadline Retail industry, providing a dividend return that is standard for its sector.

SMCI

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.33%
Q3
3.29%
Median
1.76%
Q1
0.00%
Min
0.00%

SMCI 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 vs. SMCI: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals 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.

SMCI

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
77.17%
Median
40.90%
Q1
3.87%
Min
0.00%

SMCI 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 vs. SMCI: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolBABASMCI
Dividend Yield (TTM)1.79%0.00%
Dividend Payout Ratio (TTM)103.01%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

21.77

Broadline Retail Industry

Max
62.76
Q3
32.50
Median
17.65
Q1
12.08
Min
6.87

BABA’s P/E Ratio of 21.77 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.

SMCI

31.18

Technology Hardware, Storage & Peripherals Industry

Max
43.10
Q3
28.67
Median
19.23
Q1
15.53
Min
9.46

A P/E Ratio of 31.18 places SMCI in the upper quartile for the Technology Hardware, Storage & Peripherals industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BABA vs. SMCI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

BABA

3.23

Broadline Retail Industry

Max
5.19
Q3
3.25
Median
2.13
Q1
1.01
Min
0.21

BABA’s P/S Ratio of 3.23 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.

SMCI

1.49

Technology Hardware, Storage & Peripherals Industry

Max
5.63
Q3
3.18
Median
1.10
Q1
0.49
Min
0.04

SMCI’s P/S Ratio of 1.49 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BABA vs. SMCI: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals 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.

SMCI

4.64

Technology Hardware, Storage & Peripherals Industry

Max
13.94
Q3
6.87
Median
1.88
Q1
0.94
Min
0.32

SMCI’s P/B Ratio of 4.64 is within the conventional range for the Technology Hardware, Storage & Peripherals 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.

BABA vs. SMCI: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolBABASMCI
Price-to-Earnings Ratio (TTM)21.7731.18
Price-to-Sales Ratio (TTM)3.231.49
Price-to-Book Ratio (MRQ)1.904.64
Price-to-Free Cash Flow Ratio (TTM)41.6518.17