Bed Bath & Beyond (NYSE:BBBY – Get Free Report) and Alibaba Group (NYSE:BABA – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Institutional and Insider Ownership
76.3% of Bed Bath & Beyond shares are owned by institutional investors. Comparatively, 13.5% of Alibaba Group shares are owned by institutional investors. 1.8% of Bed Bath & Beyond shares are owned by insiders. Comparatively, 12.5% of Alibaba Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Bed Bath & Beyond and Alibaba Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bed Bath & Beyond | -5.76% | -27.60% | -12.99% |
| Alibaba Group | 9.12% | 7.43% | 4.37% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bed Bath & Beyond | $1.06 billion | 0.38 | -$84.62 million | ($0.95) | -5.73 |
| Alibaba Group | $1,016.74 billion | 0.31 | $17.93 billion | $5.30 | 24.81 |
Alibaba Group has higher revenue and earnings than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Bed Bath & Beyond and Alibaba Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bed Bath & Beyond | 1 | 3 | 1 | 0 | 2.00 |
| Alibaba Group | 1 | 4 | 16 | 2 | 2.83 |
Bed Bath & Beyond currently has a consensus price target of $8.00, indicating a potential upside of 46.92%. Alibaba Group has a consensus price target of $188.75, indicating a potential upside of 43.52%. Given Bed Bath & Beyond’s higher probable upside, research analysts plainly believe Bed Bath & Beyond is more favorable than Alibaba Group.
Risk and Volatility
Bed Bath & Beyond has a beta of 3.01, suggesting that its share price is 201% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.
Dividends
Bed Bath & Beyond pays an annual dividend of $0.68 per share and has a dividend yield of 12.5%. Alibaba Group pays an annual dividend of $0.95 per share and has a dividend yield of 0.7%. Bed Bath & Beyond pays out -71.6% of its earnings in the form of a dividend. Alibaba Group pays out 17.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bed Bath & Beyond is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Alibaba Group beats Bed Bath & Beyond on 11 of the 17 factors compared between the two stocks.
About Bed Bath & Beyond
Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.
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.
Receive News & Ratings for Bed Bath & Beyond Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bed Bath & Beyond and related companies with MarketBeat.com's FREE daily email newsletter.
