Comprehensive Stock Comparison
Compare Carvana Co. (CVNA) 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 | CVNA | 48.6% revenue growth vs BABA's 5.9% |
| Value | BABA | Lower P/E (3.4x vs 45.4x) |
| Quality / Margins | BABA | 12.2% net margin vs CVNA's 3.4% |
| Stability / Safety | BABA | Beta 0.90 vs CVNA's 2.41 |
| Dividends | BABA | 1.2% yield; 2-year raise streak; CVNA pays no meaningful dividend |
| Momentum (1Y) | CVNA | +43.4% vs BABA's +10.2% |
| Efficiency (ROA) | BABA | 6.5% ROA vs CVNA's 6.4%, ROIC 9.6% vs 34.3% |
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
Carvana is an online-only used car retailer that sells vehicles directly to consumers through its e-commerce platform. It makes money primarily from vehicle sales — which account for over 90% of revenue — with additional income from financing, warranty products, and vehicle service contracts. Its key advantage is a vertically integrated model that controls the entire customer experience, from acquisition to reconditioning to delivery, bypassing traditional dealership infrastructure.
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
CVNA leads in 2 of 6 categories (Profitability & Efficiency, Total Returns). BABA leads in 2 (Risk & Volatility, Analyst Outlook). 2 tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 55.4x CVNA's $18.3B. BABA is the more profitable business, keeping 12.2% of every revenue dollar as net income compared to CVNA's 3.4%. On growth, CVNA holds the edge at +54.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CVNACarvana Co. | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $18.3B | $1.01T |
| EBITDAEarnings before interest/tax | $2.0B | $114.6B |
| Net IncomeAfter-tax profit | $629M | $123.4B |
| Free Cash FlowCash after capex | $546M | $2.6B |
| Gross MarginGross profit ÷ Revenue | +20.7% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +9.5% | +10.9% |
| Net MarginNet income ÷ Revenue | +3.4% | +12.2% |
| FCF MarginFCF ÷ Revenue | +3.0% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +54.5% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +60.9% | -52.0% |
Valuation Metrics
At 18.4x trailing earnings, BABA trades at a 53% valuation discount to CVNA's 39.5x P/E. On an enterprise value basis, CVNA's 12.6x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | CVNACarvana Co. | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $25.4B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $23.7B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | 39.55x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 45.43x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.62x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 1.25x | 18.33x |
| Price / BookPrice ÷ Book value/share | 17.83x | 2.19x |
| Price / FCFMarket cap ÷ FCF | 28.61x | 233.68x |
Profitability & Efficiency
CVNA delivers a 21.3% return on equity — every $100 of shareholder capital generates $21 in annual profit, vs $11 for BABA. CVNA carries lower financial leverage with a 0.15x debt-to-equity ratio, signaling a more conservative balance sheet compared to BABA's 0.23x. On the Piotroski fundamental quality scale (0–9), BABA scores 7/9 vs CVNA's 6/9, reflecting strong financial health.
| Metric | CVNACarvana Co. | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +21.3% | +11.1% |
| ROA (TTM)Return on assets | +6.4% | +6.5% |
| ROICReturn on invested capital | +34.3% | +9.6% |
| ROCEReturn on capital employed | +20.0% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.15x | 0.23x |
| Net DebtTotal debt minus cash | -$1.7B | $66.8B |
| Cash & Equiv.Liquid assets | $2.3B | $181.7B |
| Total DebtShort + long-term debt | $633M | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | 2.98x | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in CVNA five years ago would be worth $10,713 today (with dividends reinvested), compared to $6,154 for BABA. Over the past 12 months, CVNA leads with a +43.4% total return vs BABA's +10.2%. The 3-year compound annual growth rate (CAGR) favors CVNA at 2.3% vs BABA's 19.2% — a key indicator of consistent wealth creation.
| Metric | CVNACarvana Co. | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | -16.5% | -7.5% |
| 1-Year ReturnPast 12 months | +43.4% | +10.2% |
| 3-Year ReturnCumulative with dividends | +3447.3% | +69.4% |
| 5-Year ReturnCumulative with dividends | +7.1% | -38.5% |
| 10-Year ReturnCumulative with dividends | +2910.5% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +2.3% | +19.2% |
Risk & Volatility
BABA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than CVNA's 2.41 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 CVNA's 68.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CVNACarvana Co. | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.41x | 0.90x |
| 52-Week HighHighest price in past year | $486.89 | $192.67 |
| 52-Week LowLowest price in past year | $148.25 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +68.6% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 42.8 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 3.4M | 10.2M |
Analyst Outlook
Wall Street rates CVNA as "Buy" and BABA as "Buy". Consensus price targets imply 39.3% upside for CVNA (target: $465) 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 | CVNACarvana Co. | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $465.33 | $188.62 |
| # AnalystsCovering analysts | 44 | 58 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 2 |
| Dividend / ShareAnnual DPS | — | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | +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 |
|---|---|---|---|
| Carvana Co. (CVNA) | 100 | 495.25 | +395.3% |
| Alibaba Group Holdi… (BABA) | 100 | 79.81 | -20.2% |
Carvana Co. (CVNA) returned +7% over 5 years vs Alibaba Group Holdi… (BABA)'s -38%. A $10,000 investment in CVNA 5 years ago would be worth $10,713 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Carvana Co. (CVNA) | $365M | $20.3B | +5465.4% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
Carvana Co.'s revenue grew from $365M (2016) to $20.3B (2025) — a 56.3% 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 |
|---|---|---|---|
| Carvana Co. (CVNA) | -2.8% | 6.9% | +349.1% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
Carvana Co.'s net margin went from -3% (2016) to 7% (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 |
|---|---|---|---|
| Carvana Co. (CVNA) | 70.6 | 49.9 | -29.3% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Carvana Co. has traded in a 50x–128x P/E range over 3 years; current trailing P/E is ~40x. 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 |
|---|---|---|---|
| Carvana Co. (CVNA) | -0.68 | 8.45 | +1342.6% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Carvana Co.'s EPS grew from $-0.68 (2016) to $8.45 (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
Carvana Co. generated $889M FCF in 2025 (+128% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
CVNA vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CVNA 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 Carvana Co. (CVNA) a "Buy" — based on 44 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 — CVNA or BABA?
On trailing P/E, Alibaba Group Holding Limited (BABA) is the cheapest at 18.4x versus Carvana Co. at 39.5x. On forward P/E, Alibaba Group Holding Limited is actually cheaper at 3.4x.
03Which is the better long-term investment — CVNA or BABA?
Over the past 5 years, Carvana Co. (CVNA) delivered a total return of +7.1%, compared to -38.5% for Alibaba Group Holding Limited (BABA). A $10,000 investment in CVNA five years ago would be worth approximately $11K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CVNA returned +29.1% versus BABA's +116.1%. 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 — CVNA or BABA?
By beta (market sensitivity over 5 years), Alibaba Group Holding Limited (BABA) is the lower-risk stock at 0.90β versus Carvana Co.'s 2.41β — meaning CVNA is approximately 167% more volatile than BABA relative to the S&P 500. On balance sheet safety, Carvana Co. (CVNA) carries a lower debt/equity ratio of 15% versus 23% for Alibaba Group Holding Limited — giving it more financial flexibility in a downturn.
05Which has better profit margins — CVNA or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus 6.9% for Carvana Co. — 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 9.3% for CVNA. 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 CVNA or BABA more undervalued right now?
On forward earnings alone, Alibaba Group Holding Limited (BABA) trades at 3.4x forward P/E versus 45.4x for Carvana Co. — 42.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CVNA: 39.3% to $465.33.
07Which pays a better dividend — CVNA or BABA?
In this comparison, BABA (1.2% yield) pays a dividend. CVNA does not pay a meaningful dividend and should not be held primarily for income.
08Is CVNA 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). Carvana Co. (CVNA) carries a higher beta of 2.41 — 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%, CVNA: +29.1%), 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 CVNA 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 CVNA 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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