Comprehensive Stock Comparison
Compare Wayfair Inc. (W) vs Alibaba Group Holding Limited (BABA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | BABA | 5.9% revenue growth vs W's 5.1% |
| Value | BABA | Lower P/E (3.4x vs 26.2x) |
| Quality / Margins | BABA | 12.2% net margin vs W's -2.7% |
| Stability / Safety | BABA | Beta 0.90 vs W's 2.51 |
| Dividends | BABA | 1.2% yield; 2-year raise streak; W pays no meaningful dividend |
| Momentum (1Y) | W | +93.0% vs BABA's +10.2% |
| Efficiency (ROA) | BABA | 6.5% ROA vs W's -10.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Wayfair is an online retailer specializing in home goods — furniture, décor, and housewares — sold through its family of branded websites. It generates revenue primarily from direct retail sales to consumers, with additional income from advertising and services to suppliers. The company's key advantage is its massive online selection — over 33 million products — and proprietary logistics network that connects customers with thousands of suppliers.
Alibaba is a Chinese e-commerce and technology conglomerate that operates digital marketplaces connecting buyers and sellers. It generates revenue primarily from its core commerce segments — China Commerce (~65%) and International Commerce (~10%) — along with cloud services (~10%) and logistics through Cainiao. Its key competitive advantage is its massive ecosystem network effect, where its platforms like Taobao and Tmall create a self-reinforcing cycle of merchants and consumers that's difficult for competitors to replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
BABA leads in 3 of 6 categories (Profitability & Efficiency, Risk & Volatility). W leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 82.7x W's $12.2B. BABA is the more profitable business, keeping 12.2% of every revenue dollar as net income compared to W's -2.7%. On growth, W holds the edge at +8.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | WWayfair Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $12.2B | $1.01T |
| EBITDAEarnings before interest/tax | $140M | $114.6B |
| Net IncomeAfter-tax profit | -$325M | $123.4B |
| Free Cash FlowCash after capex | $389M | $2.6B |
| Gross MarginGross profit ÷ Revenue | +30.2% | +41.2% |
| Operating MarginEBIT ÷ Revenue | -1.5% | +10.9% |
| Net MarginNet income ÷ Revenue | -2.7% | +12.2% |
| FCF MarginFCF ÷ Revenue | +3.2% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.1% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -26.7% | -52.0% |
Valuation Metrics
On an enterprise value basis, W's 38.9x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | WWayfair Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $9.9B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $12.5B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | -31.54x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.19x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 38.87x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 0.80x | 18.33x |
| Price / BookPrice ÷ Book value/share | — | 2.19x |
| Price / FCFMarket cap ÷ FCF | 21.39x | 233.68x |
Profitability & Efficiency
| Metric | WWayfair Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | — | +11.1% |
| ROA (TTM)Return on assets | -10.4% | +6.5% |
| ROICReturn on invested capital | — | +9.6% |
| ROCEReturn on capital employed | +1.4% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | — | 0.23x |
| Net DebtTotal debt minus cash | $2.6B | $66.8B |
| Cash & Equiv.Liquid assets | $1.5B | $181.7B |
| Total DebtShort + long-term debt | $4.1B | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | -2.26x | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in BABA five years ago would be worth $6,154 today (with dividends reinvested), compared to $2,274 for W. Over the past 12 months, W leads with a +93.0% total return vs BABA's +10.2%. The 3-year compound annual growth rate (CAGR) favors W at 23.5% vs BABA's 19.2% — a key indicator of consistent wealth creation.
| Metric | WWayfair Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | -28.4% | -7.5% |
| 1-Year ReturnPast 12 months | +93.0% | +10.2% |
| 3-Year ReturnCumulative with dividends | +88.5% | +69.4% |
| 5-Year ReturnCumulative with dividends | -77.3% | -38.5% |
| 10-Year ReturnCumulative with dividends | +95.9% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +23.5% | +19.2% |
Risk & Volatility
BABA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than W's 2.51 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BABA currently trades 74.8% from its 52-week high vs W's 63.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | WWayfair Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.51x | 0.90x |
| 52-Week HighHighest price in past year | $119.98 | $192.67 |
| 52-Week LowLowest price in past year | $20.41 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +63.6% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 37.7 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 2.7M | 10.2M |
Analyst Outlook
Wall Street rates W as "Buy" and BABA as "Buy". Consensus price targets imply 40.8% upside for W (target: $108) vs 30.9% for BABA (target: $189). BABA is the only dividend payer here at 1.23% yield — a key consideration for income-focused portfolios.
| Metric | WWayfair Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $107.50 | $188.62 |
| # AnalystsCovering analysts | 57 | 58 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | — | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Wayfair Inc. (W) | 100 | 168.36 | +68.4% |
| Alibaba Group Holdi… (BABA) | 100 | 81.19 | -18.8% |
Alibaba Group Holdi… (BABA) returned -38% over 5 years vs Wayfair Inc. (W)'s -77%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Wayfair Inc. (W) | $3.4B | $12.5B | +268.5% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
Wayfair Inc.'s revenue grew from $3.4B (2016) to $12.5B (2025) — a 15.6% CAGR. Alibaba Group Holding Limited's revenue grew from $101.1B (2016) to $996.3B (2025) — a 28.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Wayfair Inc. (W) | -5.8% | -2.5% | +56.3% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
Wayfair Inc.'s net margin went from -6% (2016) to -3% (2025). Alibaba Group Holding Limited's net margin went from 71% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Alibaba Group Holding Limited has traded in a 2x–9x P/E range over 9 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Wayfair Inc. (W) | -2.29 | -2.42 | -5.7% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Wayfair Inc.'s EPS grew from $-2.29 (2016) to $-2.42 (2025). Alibaba Group Holding Limited's EPS grew from $34.00 (2016) to $53.60 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
Wayfair Inc. generated $464M FCF in 2025 (+257% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
W vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is W or BABA a better buy right now?
Alibaba Group Holding Limited (BABA) offers the better valuation at 18.4x trailing P/E (3.4x forward), making it the more compelling value choice. Analysts rate Wayfair Inc. (W) a "Buy" — based on 57 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — W or BABA?
On forward P/E, Alibaba Group Holding Limited is actually cheaper at 3.4x.
03Which is the better long-term investment — W or BABA?
Over the past 5 years, Alibaba Group Holding Limited (BABA) delivered a total return of -38.5%, compared to -77.3% for Wayfair Inc. (W). A $10,000 investment in BABA five years ago would be worth approximately $6K today (assuming dividends reinvested). Over 10 years, the gap is even starker: BABA returned +116.1% versus W's +95.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — W or BABA?
By beta (market sensitivity over 5 years), Alibaba Group Holding Limited (BABA) is the lower-risk stock at 0.90β versus Wayfair Inc.'s 2.51β — meaning W is approximately 179% more volatile than BABA relative to the S&P 500.
05Which has better profit margins — W or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus -2.5% for Wayfair Inc. — meaning it keeps 13.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BABA leads at 14.1% versus 0.1% for W. At the gross margin level — before operating expenses — BABA leads at 40.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is W or BABA more undervalued right now?
On forward earnings alone, Alibaba Group Holding Limited (BABA) trades at 3.4x forward P/E versus 26.2x for Wayfair Inc. — 22.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for W: 40.8% to $107.50.
07Which pays a better dividend — W or BABA?
In this comparison, BABA (1.2% yield) pays a dividend. W does not pay a meaningful dividend and should not be held primarily for income.
08Is W or BABA better for a retirement portfolio?
For long-horizon retirement investors, Alibaba Group Holding Limited (BABA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.90), 1.2% yield, +116.1% 10Y return). Wayfair Inc. (W) carries a higher beta of 2.51 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (BABA: +116.1%, W: +95.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between W and BABA?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. BABA pays a dividend while W does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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