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TCOM vs BABA
Revenue, margins, valuation, and 5-year total return — side by side.
Specialty Retail
TCOM vs BABA — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Travel Services | Specialty Retail |
| Market Cap | $35.57B | $341.64B |
| Revenue (TTM) | $59.76B | $1.01T |
| Net Income (TTM) | $31.17B | $123.35B |
| Gross Margin | 80.7% | 41.2% |
| Operating Margin | 26.0% | 10.9% |
| Forward P/E | 2.0x | 4.1x |
| Total Debt | $40.32B | $248.49B |
| Cash & Equiv. | $48.44B | $181.73B |
TCOM vs BABA — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Trip.com Group Limi… (TCOM) | 100 | 204.9 | +104.9% |
| Alibaba Group Holdi… (BABA) | 100 | 68.2 | -31.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TCOM vs BABA
Each card shows where this stock fits in a portfolio — not just who wins on paper.
TCOM carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 3 yrs, beta 0.97
- Rev growth 19.7%, EPS growth 67.7%, 3Y rev CAGR 38.6%
- Lower volatility, beta 0.97, Low D/E 28.1%, current ratio 1.51x
BABA is the clearest fit if your priority is long-term compounding.
- 84.5% 10Y total return vs TCOM's 23.0%
- 1.3% yield; 2-year raise streak; the other pay no meaningful dividend
- +12.4% vs TCOM's -11.1%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 19.7% revenue growth vs BABA's 5.9% | |
| Value | Lower P/E (2.0x vs 4.1x) | |
| Quality / Margins | 52.2% margin vs BABA's 12.2% | |
| Stability / Safety | Beta 0.97 vs BABA's 1.21 | |
| Dividends | 1.3% yield; 2-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +12.4% vs TCOM's -11.1% | |
| Efficiency (ROA) | 11.5% ROA vs BABA's 6.7%, ROIC 8.1% vs 9.6% |
TCOM vs BABA — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
TCOM vs BABA — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
TCOM leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
BABA is the larger business by revenue, generating $1.01T annually — 16.9x TCOM's $59.8B. TCOM is the more profitable business, keeping 52.2% of every revenue dollar as net income compared to BABA's 12.2%. On growth, TCOM holds the edge at +15.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $59.8B | $1.01T |
| EBITDAEarnings before interest/tax | $16.4B | $114.6B |
| Net IncomeAfter-tax profit | $31.2B | $123.4B |
| Free Cash FlowCash after capex | $0 | $2.6B |
| Gross MarginGross profit ÷ Revenue | +80.7% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +26.0% | +10.9% |
| Net MarginNet income ÷ Revenue | +52.2% | +12.2% |
| FCF MarginFCF ÷ Revenue | +35.7% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.5% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +188.1% | -52.0% |
Valuation Metrics
TCOM leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 15.0x trailing earnings, TCOM trades at a 17% valuation discount to BABA's 18.0x P/E. On an enterprise value basis, BABA's 13.6x EV/EBITDA is more attractive than TCOM's 15.6x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $35.6B | $341.6B |
| Enterprise ValueMkt cap + debt − cash | $34.4B | $351.4B |
| Trailing P/EPrice ÷ TTM EPS | 14.98x | 17.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.95x | 4.14x |
| PEG RatioP/E ÷ EPS growth rate | 0.84x | — |
| EV / EBITDAEnterprise value multiple | 15.60x | 13.62x |
| Price / SalesMarket cap ÷ Revenue | 4.55x | 2.34x |
| Price / BookPrice ÷ Book value/share | 1.78x | 2.13x |
| Price / FCFMarket cap ÷ FCF | 12.74x | 29.80x |
Profitability & Efficiency
TCOM leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
TCOM delivers a 18.3% return on equity — every $100 of shareholder capital generates $18 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 TCOM's 0.28x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +18.3% | +11.2% |
| ROA (TTM)Return on assets | +11.5% | +6.7% |
| ROICReturn on invested capital | +8.1% | +9.6% |
| ROCEReturn on capital employed | +9.0% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.28x | 0.23x |
| Net DebtTotal debt minus cash | -$8.1B | $66.8B |
| Cash & Equiv.Liquid assets | $48.4B | $181.7B |
| Total DebtShort + long-term debt | $40.3B | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | 31.34x | 15.74x |
Total Returns (Dividends Reinvested)
BABA leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TCOM five years ago would be worth $13,935 today (with dividends reinvested), compared to $6,453 for BABA. Over the past 12 months, BABA leads with a +12.4% total return vs TCOM's -11.1%. The 3-year compound annual growth rate (CAGR) favors BABA at 20.6% vs TCOM's 18.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -26.9% | -9.2% |
| 1-Year ReturnPast 12 months | -11.1% | +12.4% |
| 3-Year ReturnCumulative with dividends | +65.2% | +75.4% |
| 5-Year ReturnCumulative with dividends | +39.3% | -35.5% |
| 10-Year ReturnCumulative with dividends | +23.0% | +84.5% |
| CAGR (3Y)Annualised 3-year return | +18.2% | +20.6% |
Risk & Volatility
Evenly matched — TCOM and BABA each lead in 1 of 2 comparable metrics.
Risk & Volatility
TCOM is the less volatile stock with a 0.97 beta — it tends to amplify market swings less than BABA's 1.21 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BABA currently trades 73.4% from its 52-week high vs TCOM's 68.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.97x | 1.21x |
| 52-Week HighHighest price in past year | $78.99 | $192.67 |
| 52-Week LowLowest price in past year | $48.48 | $103.71 |
| % of 52W HighCurrent price vs 52-week peak | +68.9% | +73.4% |
| RSI (14)Momentum oscillator 0–100 | 46.6 | 49.5 |
| Avg Volume (50D)Average daily shares traded | 2.8M | 10.3M |
Analyst Outlook
TCOM leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates TCOM as "Buy" and BABA as "Buy". Consensus price targets imply 37.7% upside for TCOM (target: $75) vs 37.3% for BABA (target: $194). BABA is the only dividend payer here at 1.26% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $75.00 | $194.23 |
| # AnalystsCovering analysts | 43 | 59 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | 3 | 2 |
| Dividend / ShareAnnual DPS | — | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.9% | +3.8% |
TCOM leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). BABA leads in 1 (Total Returns). 1 tied.
TCOM vs BABA: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TCOM or BABA a better buy right now?
For growth investors, Trip.
com Group Limited (TCOM) is the stronger pick with 19. 7% revenue growth year-over-year, versus 5. 9% for Alibaba Group Holding Limited (BABA). Trip. com Group Limited (TCOM) offers the better valuation at 15. 0x trailing P/E (2. 0x forward), making it the more compelling value choice. Analysts rate Trip. com Group Limited (TCOM) a "Buy" — based on 43 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 — TCOM or BABA?
On trailing P/E, Trip.
com Group Limited (TCOM) is the cheapest at 15. 0x versus Alibaba Group Holding Limited at 18. 0x. On forward P/E, Trip. com Group Limited is actually cheaper at 2. 0x.
03Which is the better long-term investment — TCOM or BABA?
Over the past 5 years, Trip.
com Group Limited (TCOM) delivered a total return of +39. 3%, compared to -35. 5% for Alibaba Group Holding Limited (BABA). Over 10 years, the gap is even starker: BABA returned +84. 5% versus TCOM's +23. 0%. 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 — TCOM or BABA?
By beta (market sensitivity over 5 years), Trip.
com Group Limited (TCOM) is the lower-risk stock at 0. 97β versus Alibaba Group Holding Limited's 1. 21β — meaning BABA is approximately 25% more volatile than TCOM relative to the S&P 500. On balance sheet safety, Alibaba Group Holding Limited (BABA) carries a lower debt/equity ratio of 23% versus 28% for Trip. com Group Limited — giving it more financial flexibility in a downturn.
05Which is growing faster — TCOM or BABA?
By revenue growth (latest reported year), Trip.
com Group Limited (TCOM) is pulling ahead at 19. 7% versus 5. 9% for Alibaba Group Holding Limited (BABA). On earnings-per-share growth, the picture is similar: Alibaba Group Holding Limited grew EPS 70. 9% year-over-year, compared to 67. 7% for Trip. com Group Limited. Over a 3-year CAGR, TCOM leads at 38. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TCOM or BABA?
Trip.
com Group Limited (TCOM) is the more profitable company, earning 32. 0% net margin versus 13. 1% for Alibaba Group Holding Limited — meaning it keeps 32. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TCOM leads at 26. 6% versus 14. 1% for BABA. At the gross margin level — before operating expenses — TCOM leads at 81. 3%, 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.
07Is TCOM or BABA more undervalued right now?
On forward earnings alone, Trip.
com Group Limited (TCOM) trades at 2. 0x forward P/E versus 4. 1x for Alibaba Group Holding Limited — 2. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TCOM: 37. 7% to $75. 00.
08Which pays a better dividend — TCOM or BABA?
In this comparison, BABA (1.
3% yield) pays a dividend. TCOM does not pay a meaningful dividend and should not be held primarily for income.
09Is TCOM 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 1.
21), 1. 3% yield). Both have compounded well over 10 years (BABA: +84. 5%, TCOM: +23. 0%), 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.
10What are the main differences between TCOM 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.
In terms of investment character: TCOM is a mid-cap high-growth stock; BABA is a large-cap deep-value stock. BABA pays a dividend while TCOM 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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