RB Global (NYSE:RBA – Get Free Report) and Alibaba Group (NYSE:BABA – Get Free Report) are both large-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Risk & Volatility
RB Global has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.
Dividends
RB Global pays an annual dividend of $1.16 per share and has a dividend yield of 1.2%. Alibaba Group pays an annual dividend of $0.98 per share and has a dividend yield of 0.7%. RB Global pays out 57.7% of its earnings in the form of a dividend. Alibaba Group pays out 14.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RB Global has increased its dividend for 20 consecutive years. RB Global is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RB Global | $4.28 billion | 4.22 | $206.50 million | $2.01 | 48.75 |
| Alibaba Group | $981.77 billion | 0.36 | $11.08 billion | $6.92 | 21.32 |
Alibaba Group has higher revenue and earnings than RB Global. Alibaba Group is trading at a lower price-to-earnings ratio than RB Global, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for RB Global and Alibaba Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RB Global | 0 | 1 | 5 | 0 | 2.83 |
| Alibaba Group | 0 | 0 | 14 | 1 | 3.07 |
RB Global currently has a consensus price target of $107.64, suggesting a potential upside of 9.86%. Alibaba Group has a consensus price target of $144.07, suggesting a potential downside of 2.37%. Given RB Global’s higher possible upside, equities analysts plainly believe RB Global is more favorable than Alibaba Group.
Institutional and Insider Ownership
95.4% of RB Global shares are held by institutional investors. Comparatively, 13.5% of Alibaba Group shares are held by institutional investors. 4.3% of RB Global shares are held by insiders. Comparatively, 12.5% of Alibaba Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares RB Global and Alibaba Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RB Global | 9.64% | 8.00% | 3.45% |
| Alibaba Group | 12.29% | 12.89% | 7.69% |
Summary
Alibaba Group beats RB Global on 11 of the 18 factors compared between the two stocks.
About RB Global
RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.
About Alibaba Group
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.
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