Contrasting Alibaba Group (BABA) & EVO Payments (EVOP)

Alibaba Group (NASDAQ: EVOP) and EVO Payments (NASDAQ:EVOP) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Alibaba Group and EVO Payments, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alibaba Group 0 0 27 1 3.04
EVO Payments 0 6 3 0 2.33

Alibaba Group currently has a consensus target price of $231.35, suggesting a potential upside of 40.43%. EVO Payments has a consensus target price of $23.75, suggesting a potential downside of 11.25%. Given Alibaba Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Alibaba Group is more favorable than EVO Payments.

Institutional and Insider Ownership

38.7% of Alibaba Group shares are held by institutional investors. Comparatively, 22.2% of EVO Payments shares are held by institutional investors. 12.5% of Alibaba Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alibaba Group and EVO Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alibaba Group 20.57% 14.18% 8.61%
EVO Payments N/A N/A N/A

Valuation & Earnings

This table compares Alibaba Group and EVO Payments’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alibaba Group $39.90 billion 10.58 $10.22 billion $4.03 40.88
EVO Payments $504.75 million 4.13 -$40.24 million N/A N/A

Alibaba Group has higher revenue and earnings than EVO Payments.

Summary

Alibaba Group beats EVO Payments on 12 of the 12 factors compared between the two stocks.

Alibaba Group Company Profile

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform for brands and retailers; Rural Taobao program that enables rural residents and businesses to sell agricultural products to urban consumers; Juhuasuan, a sales and marketing platform for flash sales; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; AliExpress, a consumer marketplace; and Hema, a proprietary grocery retail format. The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange in China. In addition, it offers cloud computing services, including elastic computing, database, storage and content delivery network, large scale computing, security, and management and application services, as well as big data analytics and a machine learning platform through its Alibaba Cloud Computing platform; Web hosting and domain name registration services; and payment and escrow services, as well as develops and operates mobile Web browsers. The company provides its solutions primarily for businesses. Alibaba Group Holding Limited has strategic collaborations with Driscoll's and Thai Union/Chicken of the Sea to launch their food products to China; and a collaboration agreement with The Hong Kong Polytechnic University. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.

EVO Payments Company Profile

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor servicing approximately 525,000 merchants. The company processes approximately 900 million transactions in North America and approximately 1.7 billion transactions in Europe. Its payment and commerce solutions consist of gateway solutions, online fraud prevention and management reporting, online hosted payments page capabilities, security tokenization, and encryption solutions at the point-of-sale and online; dynamic currency conversion; loyalty offers; and other ancillary solutions. The company also offers processing capabilities for specific industries and provides merchants with recurring billing, multi-currency authorization, and settlement and cross-border processing. In addition, it provides other services that enable through technical integrations with third-party providers. EVO Payments, Inc. operates as an intermediary between merchants and card networks. The company was founded in 1989 and is headquartered in Atlanta, Georgia.

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