Comprehensive Stock Comparison
Compare Five Below, Inc. (FIVE) 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 | FIVE | 8.9% revenue growth vs BABA's 5.9% |
| Value | BABA | Lower P/E (3.4x vs 35.3x) |
| Quality / Margins | BABA | 12.2% net margin vs FIVE's 7.0% |
| Stability / Safety | BABA | Beta 0.90 vs FIVE's 1.78, lower leverage |
| Dividends | BABA | 1.2% yield; 2-year raise streak; FIVE pays no meaningful dividend |
| Momentum (1Y) | FIVE | +157.3% vs BABA's +10.2% |
| Efficiency (ROA) | BABA | 6.5% ROA vs FIVE's 6.4%, ROIC 9.6% vs 7.4% |
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
Five Below is a specialty value retailer targeting teens and pre-teens with trendy merchandise priced at $5 or less. It generates revenue primarily from retail store sales — over 1,400 locations across the U.S. — with a broad product mix spanning accessories, tech gadgets, games, and seasonal items. The company's competitive advantage lies in its disciplined price-point focus and treasure-hunt shopping experience that drives high foot traffic and repeat visits.
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 2 of 6 categories (Profitability & Efficiency, Analyst Outlook). FIVE leads in 1 (Total Returns). 3 tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 228.6x FIVE's $4.4B. BABA is the more profitable business, keeping 12.2% of every revenue dollar as net income compared to FIVE's 7.0%. On growth, FIVE holds the edge at +23.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | FIVEFive Below, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $1.01T |
| EBITDAEarnings before interest/tax | $582M | $114.6B |
| Net IncomeAfter-tax profit | $308M | $123.4B |
| Free Cash FlowCash after capex | $323M | $2.6B |
| Gross MarginGross profit ÷ Revenue | +33.4% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +8.9% | +10.9% |
| Net MarginNet income ÷ Revenue | +7.0% | +12.2% |
| FCF MarginFCF ÷ Revenue | +7.3% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +23.1% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +21.0% | -52.0% |
Valuation Metrics
At 18.4x trailing earnings, BABA trades at a 62% valuation discount to FIVE's 48.6x P/E. On an enterprise value basis, FIVE's 28.5x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | FIVEFive Below, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $12.3B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $14.0B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | 48.59x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 35.34x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | 6.02x | — |
| EV / EBITDAEnterprise value multiple | 28.46x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 3.18x | 18.33x |
| Price / BookPrice ÷ Book value/share | 6.82x | 2.19x |
| Price / FCFMarket cap ÷ FCF | 115.60x | 233.68x |
Profitability & Efficiency
FIVE delivers a 15.8% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $11 for BABA. BABA carries lower financial leverage with a 0.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to FIVE's 1.10x. On the Piotroski fundamental quality scale (0–9), BABA scores 7/9 vs FIVE's 5/9, reflecting strong financial health.
| Metric | FIVEFive Below, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +15.8% | +11.1% |
| ROA (TTM)Return on assets | +6.4% | +6.5% |
| ROICReturn on invested capital | +7.4% | +9.6% |
| ROCEReturn on capital employed | +9.6% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 1.10x | 0.23x |
| Net DebtTotal debt minus cash | $1.6B | $66.8B |
| Cash & Equiv.Liquid assets | $332M | $181.7B |
| Total DebtShort + long-term debt | $2.0B | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | — | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in FIVE five years ago would be worth $11,517 today (with dividends reinvested), compared to $6,154 for BABA. Over the past 12 months, FIVE leads with a +157.3% total return vs BABA's +10.2%. The 3-year compound annual growth rate (CAGR) favors BABA at 19.2% vs FIVE's 3.0% — a key indicator of consistent wealth creation.
| Metric | FIVEFive Below, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | +15.5% | -7.5% |
| 1-Year ReturnPast 12 months | +157.3% | +10.2% |
| 3-Year ReturnCumulative with dividends | +9.4% | +69.4% |
| 5-Year ReturnCumulative with dividends | +15.2% | -38.5% |
| 10-Year ReturnCumulative with dividends | +482.9% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +3.0% | +19.2% |
Risk & Volatility
BABA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than FIVE's 1.78 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FIVE currently trades 97.6% from its 52-week high vs BABA's 74.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | FIVEFive Below, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.78x | 0.90x |
| 52-Week HighHighest price in past year | $229.08 | $192.67 |
| 52-Week LowLowest price in past year | $52.38 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +97.6% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 74.3 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 869K | 10.2M |
Analyst Outlook
Wall Street rates FIVE as "Buy" and BABA as "Buy". Consensus price targets imply 30.9% upside for BABA (target: $189) vs -5.1% for FIVE (target: $212). BABA is the only dividend payer here at 1.23% yield — a key consideration for income-focused portfolios.
| Metric | FIVEFive Below, Inc. | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $212.19 | $188.62 |
| # AnalystsCovering analysts | 49 | 58 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 2 |
| Dividend / ShareAnnual DPS | — | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +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 |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 100 | 201.67 | +101.7% |
| Alibaba Group Holdi… (BABA) | 100 | 79.81 | -20.2% |
Five Below, Inc. (FIVE) returned +15% over 5 years vs Alibaba Group Holdi… (BABA)'s -38%. A $10,000 investment in FIVE 5 years ago would be worth $11,517 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Five Below, Inc. (FIVE) | $1.0B | $3.9B | +287.5% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
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 |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 7.2% | 6.5% | -8.9% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
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 |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 36 | 22.8 | -36.7% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Five Below, Inc. has traded in a 23x–80x P/E range over 8 years; current trailing P/E is ~49x. 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 |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 1.3 | 4.6 | +253.8% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Alibaba Group Holding Limited's EPS grew from $34.00 (2016) to $53.60 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
Five Below, Inc. generated $107M FCF in 2024 (+168% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
FIVE vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FIVE 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 Five Below, Inc. (FIVE) a "Buy" — based on 49 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 — FIVE or BABA?
On trailing P/E, Alibaba Group Holding Limited (BABA) is the cheapest at 18.4x versus Five Below, Inc. at 48.6x. On forward P/E, Alibaba Group Holding Limited is actually cheaper at 3.4x.
03Which is the better long-term investment — FIVE or BABA?
Over the past 5 years, Five Below, Inc. (FIVE) delivered a total return of +15.2%, compared to -38.5% for Alibaba Group Holding Limited (BABA). A $10,000 investment in FIVE five years ago would be worth approximately $12K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FIVE returned +482.9% 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 — FIVE or BABA?
By beta (market sensitivity over 5 years), Alibaba Group Holding Limited (BABA) is the lower-risk stock at 0.90β versus Five Below, Inc.'s 1.78β — meaning FIVE is approximately 98% more volatile than BABA relative to the S&P 500. On balance sheet safety, Alibaba Group Holding Limited (BABA) carries a lower debt/equity ratio of 23% versus 110% for Five Below, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FIVE or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus 6.5% for Five Below, 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 8.4% for FIVE. 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 FIVE or BABA more undervalued right now?
On forward earnings alone, Alibaba Group Holding Limited (BABA) trades at 3.4x forward P/E versus 35.3x for Five Below, Inc. — 31.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BABA: 30.9% to $188.62.
07Which pays a better dividend — FIVE or BABA?
In this comparison, BABA (1.2% yield) pays a dividend. FIVE does not pay a meaningful dividend and should not be held primarily for income.
08Is FIVE 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). Five Below, Inc. (FIVE) carries a higher beta of 1.78 — 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%, FIVE: +482.9%), 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 FIVE 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 FIVE 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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