CafePress (NASDAQ: PRSS) and Alibaba Group (NYSE:BABA) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.
Institutional & Insider Ownership
26.8% of CafePress shares are owned by institutional investors. Comparatively, 38.1% of Alibaba Group shares are owned by institutional investors. 17.3% of CafePress shares are owned by insiders. Comparatively, 12.5% of Alibaba Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares CafePress and Alibaba Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CafePress||$102.21 million||0.31||-$26.47 million||($0.43)||-4.37|
|Alibaba Group||$22.99 billion||19.33||$6.35 billion||$3.56||48.75|
Alibaba Group has higher revenue and earnings than CafePress. CafePress is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
This table compares CafePress and Alibaba Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for CafePress and Alibaba Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CafePress presently has a consensus price target of $3.50, suggesting a potential upside of 86.17%. Alibaba Group has a consensus price target of $182.94, suggesting a potential upside of 5.41%. Given CafePress’ higher probable upside, analysts plainly believe CafePress is more favorable than Alibaba Group.
Risk and Volatility
CafePress has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500.
Alibaba Group beats CafePress on 12 of the 14 factors compared between the two stocks.
CafePress Inc. is an online retailer of personalized products offering various gifts and accessories, including t-shirts and apparel, mugs and drinkware, and home goods, such as custom shower curtains and bed coverings. The Company conducts its business on its primary United States-based domain, CafePress.com, and also operates CafePress branded Websites for the markets in the United Kingdom, Canada and Australia. It also sells CafePress branded products through other online retail partners. Its products are customized with designs contributed through various means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with entertainment companies and brands. Its facility in Louisville, Kentucky has technology and manufacturing processes that enables it to provide customized products that are individually built to order. The Company’s processes enable it to produce a range of merchandise.
About Alibaba Group
Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).
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