Comprehensive Stock Comparison
Compare Lowe's Companies, Inc. (LOW) vs Alibaba Group Holding Limited (BABA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | BABA | 5.9% revenue growth vs LOW's 3.1% |
| Value | BABA | Lower P/E (3.4x vs 21.0x) |
| Quality / Margins | BABA | 12.2% net margin vs LOW's 7.7% |
| Stability / Safety | LOW | Beta 0.61 vs BABA's 0.90 |
| Dividends | LOW | 1.8% yield, 16-year raise streak, vs BABA's 1.2% |
| Momentum (1Y) | BABA | +10.2% vs LOW's +8.3% |
| Efficiency (ROA) | LOW | 12.3% ROA vs BABA's 6.5%, ROIC 76.2% vs 9.6% |
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
Lowe's is a major home improvement retailer that sells products for construction, maintenance, repair, remodeling, and decorating through its physical stores and online channels. It generates revenue primarily from retail sales of national brand-name merchandise and private label products — with professional customers representing a growing segment — along with installation services and extended protection plans. The company's competitive advantage lies in its extensive store network, strong brand recognition, and scale advantages in procurement and distribution.
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
LOW leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 11.7x LOW's $86.3B. Profitability is closely matched — net margins range from 12.2% (BABA) to 7.7% (LOW). On growth, LOW holds the edge at +10.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LOWLowe's Companies,… | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $86.3B | $1.01T |
| EBITDAEarnings before interest/tax | $12.3B | $114.6B |
| Net IncomeAfter-tax profit | $6.7B | $123.4B |
| Free Cash FlowCash after capex | $7.7B | $2.6B |
| Gross MarginGross profit ÷ Revenue | +33.5% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +11.8% | +10.9% |
| Net MarginNet income ÷ Revenue | +7.7% | +12.2% |
| FCF MarginFCF ÷ Revenue | +8.9% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.9% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -11.0% | -52.0% |
Valuation Metrics
At 18.4x trailing earnings, BABA trades at a 17% valuation discount to LOW's 22.3x P/E. On an enterprise value basis, LOW's 12.8x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | LOWLowe's Companies,… | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $148.2B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $154.4B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | 22.33x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.96x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | 2.52x | — |
| EV / EBITDAEnterprise value multiple | 12.76x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 1.72x | 18.33x |
| Price / BookPrice ÷ Book value/share | — | 2.19x |
| Price / FCFMarket cap ÷ FCF | 19.36x | 233.68x |
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), BABA scores 7/9 vs LOW's 6/9, reflecting strong financial health.
| Metric | LOWLowe's Companies,… | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | — | +11.1% |
| ROA (TTM)Return on assets | +12.3% | +6.5% |
| ROICReturn on invested capital | +76.2% | +9.6% |
| ROCEReturn on capital employed | +33.6% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | — | 0.23x |
| Net DebtTotal debt minus cash | $6.2B | $66.8B |
| Cash & Equiv.Liquid assets | $982M | $181.7B |
| Total DebtShort + long-term debt | $7.2B | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | 8.90x | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in LOW five years ago would be worth $17,610 today (with dividends reinvested), compared to $6,154 for BABA. Over the past 12 months, BABA leads with a +10.2% total return vs LOW's +8.3%. The 3-year compound annual growth rate (CAGR) favors BABA at 19.2% vs LOW's 10.6% — a key indicator of consistent wealth creation.
| Metric | LOWLowe's Companies,… | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | +7.6% | -7.5% |
| 1-Year ReturnPast 12 months | +8.3% | +10.2% |
| 3-Year ReturnCumulative with dividends | +35.2% | +69.4% |
| 5-Year ReturnCumulative with dividends | +76.1% | -38.5% |
| 10-Year ReturnCumulative with dividends | +335.9% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +10.6% | +19.2% |
Risk & Volatility
LOW is the less volatile stock with a 0.61 beta — it tends to amplify market swings less than BABA's 0.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LOW currently trades 90.3% from its 52-week high vs BABA's 74.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LOWLowe's Companies,… | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.61x | 0.90x |
| 52-Week HighHighest price in past year | $293.06 | $192.67 |
| 52-Week LowLowest price in past year | $206.39 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +90.3% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 40.9 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 10.2M |
Analyst Outlook
Wall Street rates LOW as "Buy" and BABA as "Buy". Consensus price targets imply 30.9% upside for BABA (target: $189) vs 9.5% for LOW (target: $290). For income investors, LOW offers the higher dividend yield at 1.78% vs BABA's 1.23%.
| Metric | LOWLowe's Companies,… | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $289.77 | $188.62 |
| # AnalystsCovering analysts | 51 | 58 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +1.2% |
| Dividend StreakConsecutive years of raises | 16 | 2 |
| Dividend / ShareAnnual DPS | $4.71 | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 100 | 252.47 | +152.5% |
| Alibaba Group Holdi… (BABA) | 100 | 80.96 | -19.0% |
Lowe's Companies, I… (LOW) returned +76% over 5 years vs Alibaba Group Holdi… (BABA)'s -38%. A $10,000 investment in LOW 5 years ago would be worth $17,610 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | $65.0B | $86.3B | +32.7% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
Lowe's Companies, Inc.'s revenue grew from $65.0B (2016) to $86.3B (2025) — a 3.2% 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 |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 4.8% | 7.7% | +62.2% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
Lowe's Companies, Inc.'s net margin went from 5% (2016) to 8% (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 |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 22.7 | 20.4 | -10.1% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Lowe's Companies, Inc. has traded in a 17x–32x P/E range over 9 years; current trailing P/E is ~22x. 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 |
|---|---|---|---|
| Lowe's Companies, I… (LOW) | 3.47 | 11.85 | +241.5% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Lowe's Companies, Inc.'s EPS grew from $3.47 (2016) to $11.85 (2025) — a 15% CAGR. Alibaba Group Holding Limited's EPS grew from $34.00 (2016) to $53.60 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
Lowe's Companies, Inc. generated $8B FCF in 2025 (-7% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
LOW vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LOW 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 Lowe's Companies, Inc. (LOW) a "Buy" — based on 51 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 — LOW or BABA?
On trailing P/E, Alibaba Group Holding Limited (BABA) is the cheapest at 18.4x versus Lowe's Companies, Inc. at 22.3x. On forward P/E, Alibaba Group Holding Limited is actually cheaper at 3.4x.
03Which is the better long-term investment — LOW or BABA?
Over the past 5 years, Lowe's Companies, Inc. (LOW) delivered a total return of +76.1%, compared to -38.5% for Alibaba Group Holding Limited (BABA). A $10,000 investment in LOW five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LOW returned +335.9% 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 — LOW or BABA?
By beta (market sensitivity over 5 years), Lowe's Companies, Inc. (LOW) is the lower-risk stock at 0.61β versus Alibaba Group Holding Limited's 0.90β — meaning BABA is approximately 47% more volatile than LOW relative to the S&P 500.
05Which has better profit margins — LOW or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus 7.7% for Lowe's Companies, 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 11.8% for LOW. 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 LOW or BABA more undervalued right now?
On forward earnings alone, Alibaba Group Holding Limited (BABA) trades at 3.4x forward P/E versus 21.0x for Lowe's Companies, Inc. — 17.5x 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 — LOW or BABA?
All stocks in this comparison pay dividends. Lowe's Companies, Inc. (LOW) offers the highest yield at 1.8%, versus 1.2% for Alibaba Group Holding Limited (BABA).
08Is LOW or BABA better for a retirement portfolio?
For long-horizon retirement investors, Lowe's Companies, Inc. (LOW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.61), 1.8% yield, +335.9% 10Y return). Both have compounded well over 10 years (LOW: +335.9%, BABA: +116.1%), 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 LOW 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. 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.