Comprehensive Stock Comparison
Compare Newegg Commerce, Inc. (NEGG) 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 NEGG's -17.5% |
| Quality / Margins | BABA | 12.2% net margin vs NEGG's -1.7% |
| Stability / Safety | BABA | Beta 0.90 vs NEGG's 1.27, lower leverage |
| Dividends | BABA | 1.2% yield; 2-year raise streak; NEGG pays no meaningful dividend |
| Momentum (1Y) | NEGG | +449.6% vs BABA's +10.2% |
| Efficiency (ROA) | BABA | 6.5% ROA vs NEGG's -6.1%, ROIC 9.6% vs -39.3% |
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
Newegg is an electronics-focused e-commerce retailer operating primarily in North America. It generates revenue through direct online sales of computer hardware, gaming gear, consumer electronics, and related products — with its marketplace also earning commissions from third-party sellers. The company's competitive advantage lies in its specialized focus on tech-savvy customers and its strong reputation within the PC building and gaming communities.
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 4 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 1 category is tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 770.7x NEGG's $1.3B. BABA is the more profitable business, keeping 12.2% of every revenue dollar as net income compared to NEGG's -1.7%. On growth, NEGG holds the edge at +12.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NEGGNewegg Commerce, … | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $1.01T |
| EBITDAEarnings before interest/tax | -$20M | $114.6B |
| Net IncomeAfter-tax profit | -$23M | $123.4B |
| Free Cash FlowCash after capex | $9M | $2.6B |
| Gross MarginGross profit ÷ Revenue | +11.3% | +41.2% |
| Operating MarginEBIT ÷ Revenue | -2.2% | +10.9% |
| Net MarginNet income ÷ Revenue | -1.7% | +12.2% |
| FCF MarginFCF ÷ Revenue | +0.7% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +12.5% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +82.8% | -52.0% |
Valuation Metrics
| Metric | NEGGNewegg Commerce, … | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $866.0B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $866.0B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | -19.76x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 700.90x | 18.33x |
| Price / BookPrice ÷ Book value/share | 8.08x | 2.19x |
| Price / FCFMarket cap ÷ FCF | — | 233.68x |
Profitability & Efficiency
BABA delivers a 11.1% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $-20 for NEGG. BABA carries lower financial leverage with a 0.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to NEGG's 0.69x. On the Piotroski fundamental quality scale (0–9), BABA scores 7/9 vs NEGG's 5/9, reflecting strong financial health.
| Metric | NEGGNewegg Commerce, … | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | -19.8% | +11.1% |
| ROA (TTM)Return on assets | -6.1% | +6.5% |
| ROICReturn on invested capital | -39.3% | +9.6% |
| ROCEReturn on capital employed | -28.2% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.69x | 0.23x |
| Net DebtTotal debt minus cash | -$27M | $66.8B |
| Cash & Equiv.Liquid assets | $100M | $181.7B |
| Total DebtShort + long-term debt | $73M | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | -54.15x | 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 $2,538 for NEGG. Over the past 12 months, NEGG leads with a +449.6% total return vs BABA's +10.2%. The 3-year compound annual growth rate (CAGR) favors BABA at 19.2% vs NEGG's 16.9% — a key indicator of consistent wealth creation.
| Metric | NEGGNewegg Commerce, … | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | -15.0% | -7.5% |
| 1-Year ReturnPast 12 months | +449.6% | +10.2% |
| 3-Year ReturnCumulative with dividends | +59.9% | +69.4% |
| 5-Year ReturnCumulative with dividends | -74.6% | -38.5% |
| 10-Year ReturnCumulative with dividends | -83.5% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +16.9% | +19.2% |
Risk & Volatility
BABA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than NEGG's 1.27 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 NEGG's 32.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NEGGNewegg Commerce, … | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.27x | 0.90x |
| 52-Week HighHighest price in past year | $137.84 | $192.67 |
| 52-Week LowLowest price in past year | $3.32 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +32.3% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 45.5 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 72K | 10.2M |
Analyst Outlook
Wall Street rates NEGG as "Buy" and BABA as "Buy". Consensus price targets imply 30.9% upside for BABA (target: $189) vs -82.6% for NEGG (target: $8). BABA is the only dividend payer here at 1.23% yield — a key consideration for income-focused portfolios.
| Metric | NEGGNewegg Commerce, … | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $7.75 | $188.62 |
| # AnalystsCovering analysts | 1 | 58 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | — | 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 |
|---|---|---|---|
| Newegg Commerce, In… (NEGG) | 100 | 37.87 | -62.1% |
| Alibaba Group Holdi… (BABA) | 100 | 79.81 | -20.2% |
Alibaba Group Holdi… (BABA) returned -38% over 5 years vs Newegg Commerce, In… (NEGG)'s -75%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Newegg Commerce, In… (NEGG) | $13M | $1.2B | +9359.0% |
| 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 |
|---|---|---|---|
| Newegg Commerce, In… (NEGG) | -73.9% | -3.5% | +95.3% |
| 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 |
|---|---|---|---|
| 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 |
|---|---|---|---|
| Newegg Commerce, In… (NEGG) | -7.41 | -2.25 | +69.6% |
| 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
Newegg Commerce, Inc. generated $-4M FCF in 2024 (+93% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
NEGG vs BABA: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is NEGG 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 Newegg Commerce, Inc. (NEGG) a "Buy" — based on 1 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 is the better long-term investment — NEGG or BABA?
Over the past 5 years, Alibaba Group Holding Limited (BABA) delivered a total return of -38.5%, compared to -74.6% for Newegg Commerce, Inc. (NEGG). 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 NEGG's -83.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — NEGG or BABA?
By beta (market sensitivity over 5 years), Alibaba Group Holding Limited (BABA) is the lower-risk stock at 0.90β versus Newegg Commerce, Inc.'s 1.27β — meaning NEGG is approximately 41% 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 69% for Newegg Commerce, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — NEGG or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus -3.5% for Newegg Commerce, 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 -4.2% for NEGG. 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.
05Is NEGG or BABA more undervalued right now?
Analyst consensus price targets imply the most upside for BABA: 30.9% to $188.62.
06Which pays a better dividend — NEGG or BABA?
In this comparison, BABA (1.2% yield) pays a dividend. NEGG does not pay a meaningful dividend and should not be held primarily for income.
07Is NEGG 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). Both have compounded well over 10 years (BABA: +116.1%, NEGG: -83.5%), 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.
08What are the main differences between NEGG 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 NEGG 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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