Corpay (NYSE:CPAY – Get Free Report) and Alibaba Group (NYSE:BABA – Get Free Report) are both large-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Risk and Volatility
Corpay has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.
Profitability
This table compares Corpay and Alibaba Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Corpay | 26.14% | 39.44% | 7.54% |
| Alibaba Group | 8.98% | 12.28% | 7.44% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Corpay | 0 | 3 | 11 | 1 | 2.87 |
| Alibaba Group | 0 | 2 | 13 | 0 | 2.87 |
Corpay currently has a consensus target price of $377.50, indicating a potential upside of 5.52%. Alibaba Group has a consensus target price of $114.07, indicating a potential upside of 36.22%. Given Alibaba Group’s higher possible upside, analysts plainly believe Alibaba Group is more favorable than Corpay.
Valuation and Earnings
This table compares Corpay and Alibaba Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Corpay | $3.76 billion | 6.64 | $981.89 million | $14.02 | 25.52 |
| Alibaba Group | $961.96 billion | 0.21 | $11.08 billion | $4.93 | 16.99 |
Alibaba Group has higher revenue and earnings than Corpay. Alibaba Group is trading at a lower price-to-earnings ratio than Corpay, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.8% of Corpay shares are owned by institutional investors. Comparatively, 13.5% of Alibaba Group shares are owned by institutional investors. 6.1% of Corpay 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 company will outperform the market over the long term.
Summary
Corpay beats Alibaba Group on 9 of the 14 factors compared between the two stocks.
About Corpay
Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.
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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