Comprehensive Stock Comparison
Compare Toyota Motor Corporation (TM) 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 | TM | 6.5% revenue growth vs BABA's 5.9% |
| Value | TM | Lower P/E (0.1x vs 3.4x) |
| Quality / Margins | BABA | 12.2% net margin vs TM's 9.4% |
| Stability / Safety | BABA | Beta 0.90 vs TM's 0.93, lower leverage |
| Dividends | TM | 2.3% yield, 4-year raise streak, vs BABA's 1.2% |
| Momentum (1Y) | TM | +36.7% vs BABA's +10.2% |
| Efficiency (ROA) | BABA | 6.5% ROA vs TM's 4.7%, ROIC 9.6% vs 5.6% |
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
Toyota is one of the world's largest automakers, manufacturing and selling vehicles across nearly every segment — from compact cars to luxury sedans and trucks. It generates most of its revenue from automotive sales (around 90%), supplemented by financial services (about 8%) that provide financing and leasing to customers. The company's key advantage is its legendary manufacturing efficiency — particularly the Toyota Production System — which delivers industry-leading quality and cost control while pioneering hybrid technology with its Prius platform.
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
TM leads in 3 of 6 categories (Valuation Metrics, Total Returns). BABA leads in 1 (Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
TM is the larger business by revenue, generating $49.39T annually — 48.8x BABA's $1.01T. Profitability is closely matched — net margins range from 12.2% (BABA) to 9.4% (TM). On growth, TM holds the edge at +8.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TMToyota Motor Corp… | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $49.39T | $1.01T |
| EBITDAEarnings before interest/tax | $6.59T | $114.6B |
| Net IncomeAfter-tax profit | $4.63T | $123.4B |
| Free Cash FlowCash after capex | $147.8B | $2.6B |
| Gross MarginGross profit ÷ Revenue | +18.0% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +8.8% | +10.9% |
| Net MarginNet income ÷ Revenue | +9.4% | +12.2% |
| FCF MarginFCF ÷ Revenue | +0.3% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.2% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +65.7% | -52.0% |
Valuation Metrics
At 10.5x trailing earnings, TM trades at a 43% valuation discount to BABA's 18.4x P/E. On an enterprise value basis, TM's 11.2x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | TMToyota Motor Corp… | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $315.9B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $506.8B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | 10.53x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.08x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | 0.52x | — |
| EV / EBITDAEnterprise value multiple | 11.23x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 1.03x | 18.33x |
| Price / BookPrice ÷ Book value/share | 1.35x | 2.19x |
| Price / FCFMarket cap ÷ FCF | — | 233.68x |
Profitability & Efficiency
TM delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 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 TM's 1.05x. On the Piotroski fundamental quality scale (0–9), BABA scores 7/9 vs TM's 5/9, reflecting strong financial health.
| Metric | TMToyota Motor Corp… | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +12.0% | +11.1% |
| ROA (TTM)Return on assets | +4.7% | +6.5% |
| ROICReturn on invested capital | +5.6% | +9.6% |
| ROCEReturn on capital employed | +7.7% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 1.05x | 0.23x |
| Net DebtTotal debt minus cash | $29.81T | $66.8B |
| Cash & Equiv.Liquid assets | $8.98T | $181.7B |
| Total DebtShort + long-term debt | $38.79T | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | 38.49x | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in TM five years ago would be worth $17,804 today (with dividends reinvested), compared to $6,154 for BABA. Over the past 12 months, TM leads with a +36.7% total return vs BABA's +10.2%. The 3-year compound annual growth rate (CAGR) favors TM at 23.7% vs BABA's 19.2% — a key indicator of consistent wealth creation.
| Metric | TMToyota Motor Corp… | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | +11.2% | -7.5% |
| 1-Year ReturnPast 12 months | +36.7% | +10.2% |
| 3-Year ReturnCumulative with dividends | +89.4% | +69.4% |
| 5-Year ReturnCumulative with dividends | +78.0% | -38.5% |
| 10-Year ReturnCumulative with dividends | +174.4% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +23.7% | +19.2% |
Risk & Volatility
BABA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than TM's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TM currently trades 97.4% from its 52-week high vs BABA's 74.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TMToyota Motor Corp… | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.93x | 0.90x |
| 52-Week HighHighest price in past year | $248.90 | $192.67 |
| 52-Week LowLowest price in past year | $155.00 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +97.4% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 59.2 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 254K | 10.2M |
Analyst Outlook
Wall Street rates TM as "Hold" and BABA as "Buy". Consensus price targets imply 30.9% upside for BABA (target: $189) vs -26.0% for TM (target: $179). For income investors, TM offers the higher dividend yield at 2.28% vs BABA's 1.23%.
| Metric | TMToyota Motor Corp… | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $179.41 | $188.62 |
| # AnalystsCovering analysts | 15 | 58 |
| Dividend YieldAnnual dividend ÷ price | +2.3% | +1.2% |
| Dividend StreakConsecutive years of raises | 4 | 2 |
| Dividend / ShareAnnual DPS | $863.50 | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.4% | +0.5% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 100 | 174.5 | +74.5% |
| Alibaba Group Holdi… (BABA) | 100 | 79.81 | -20.2% |
Toyota Motor Corpor… (TM) returned +78% over 5 years vs Alibaba Group Holdi… (BABA)'s -38%. A $10,000 investment in TM 5 years ago would be worth $17,804 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | $28.4T | $48.0T | +69.1% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
Toyota Motor Corporation's revenue grew from $28.4T (2016) to $48.0T (2025) — a 6.0% 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 |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 8.1% | 9.9% | +21.8% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
Toyota Motor Corporation's net margin went from 8% (2016) to 10% (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 |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 0.1 | 0.1 | +0.0% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Toyota Motor Corporation has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~11x. 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 |
|---|---|---|---|
| Toyota Motor Corpor… (TM) | 1,470.7 | 3,595.6 | +144.5% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Toyota Motor Corporation's EPS grew from $1470.70 (2016) to $3595.60 (2025) — a 10% 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
Toyota Motor Corporation generated $-1.6T FCF in 2025 (-21617% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
TM vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TM or BABA a better buy right now?
Toyota Motor Corporation (TM) offers the better valuation at 10.5x trailing P/E (0.1x forward), making it the more compelling value choice. Analysts rate Alibaba Group Holding Limited (BABA) a "Buy" — based on 58 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 — TM or BABA?
On trailing P/E, Toyota Motor Corporation (TM) is the cheapest at 10.5x versus Alibaba Group Holding Limited at 18.4x. On forward P/E, Toyota Motor Corporation is actually cheaper at 0.1x.
03Which is the better long-term investment — TM or BABA?
Over the past 5 years, Toyota Motor Corporation (TM) delivered a total return of +78.0%, compared to -38.5% for Alibaba Group Holding Limited (BABA). A $10,000 investment in TM five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TM returned +174.4% 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 — TM or BABA?
By beta (market sensitivity over 5 years), Alibaba Group Holding Limited (BABA) is the lower-risk stock at 0.90β versus Toyota Motor Corporation's 0.93β — meaning TM is approximately 3% 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 105% for Toyota Motor Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — TM or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus 9.9% for Toyota Motor Corporation — 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 10.0% for TM. 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 TM or BABA more undervalued right now?
On forward earnings alone, Toyota Motor Corporation (TM) trades at 0.1x forward P/E versus 3.4x for Alibaba Group Holding Limited — 3.3x 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 — TM or BABA?
All stocks in this comparison pay dividends. Toyota Motor Corporation (TM) offers the highest yield at 2.3%, versus 1.2% for Alibaba Group Holding Limited (BABA).
08Is TM or BABA better for a retirement portfolio?
For long-horizon retirement investors, Toyota Motor Corporation (TM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.93), 2.3% yield, +174.4% 10Y return). Both have compounded well over 10 years (TM: +174.4%, 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 TM 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: TM is a large-cap deep-value stock; BABA is a mega-cap quality compounder stock. 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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