Alibaba Group (NYSE:BABA – Get Free Report) and Onfolio (NASDAQ:ONFO – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Risk and Volatility
Alibaba Group has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Onfolio has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.
Insider and Institutional Ownership
13.5% of Alibaba Group shares are held by institutional investors. Comparatively, 0.8% of Onfolio shares are held by institutional investors. 12.5% of Alibaba Group shares are held by insiders. Comparatively, 32.4% of Onfolio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alibaba Group | 1 | 0 | 17 | 1 | 2.95 |
| Onfolio | 1 | 0 | 0 | 0 | 1.00 |
Alibaba Group presently has a consensus price target of $190.18, indicating a potential upside of 19.61%. Given Alibaba Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Alibaba Group is more favorable than Onfolio.
Valuation and Earnings
This table compares Alibaba Group and Onfolio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alibaba Group | $1,000.76 billion | 0.38 | $17.93 billion | $8.60 | 18.49 |
| Onfolio | $7.86 million | 0.74 | -$1.77 million | ($0.41) | -2.76 |
Alibaba Group has higher revenue and earnings than Onfolio. Onfolio is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alibaba Group and Onfolio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alibaba Group | 14.85% | 13.04% | 7.70% |
| Onfolio | -16.37% | -38.18% | -18.88% |
Summary
Alibaba Group beats Onfolio on 12 of the 15 factors compared between the two stocks.
About Alibaba Group
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.
About Onfolio
Onfolio Holdings, Inc. acquires and develops internet businesses. It provides website management, digital, advertising, and content placement services on its websites; and product sales on various sites. The company was founded in 2019 and is based in Wilmington, Delaware.
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