BABA Holdings, Inc. (BABA)vs F Holdings, Inc. (F)

Quick verdict

BABA Holdings, Inc. (BABA) and F Holdings, Inc. (F) appeal to different investors. On our six-factor framework, BABA scores 4 and F scores 2. F looks cheaper on the multiples that matter, while F grows faster and BABA earns higher returns on capital. Overall, BABA edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

BABA Holdings, Inc. operates in Oil & Gas Integrated (Energy), while F Holdings, Inc. sits in Semiconductors (Technology). The two operate in different sectors, so cyclicality and end-market exposure differ — factor that into any portfolio overlap. BABA carries a beta of 1.84 versus 1.54 for F, meaning BABA has historically been the more volatile of the two.

Valuation

On valuation, F is the cheaper stock. BABA trades on a forward P/E of 22.12 and EV/EBITDA of 21.41, against 30.96 and 7.97 for F. Price-to-sales is 13.99 vs 4.13, and free-cash-flow yield is 3.3% vs 6.4%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

F is the faster grower. BABA has compounded revenue at 5.1% over three years with EPS growth of 8.1%, while F has delivered 22.7% revenue and 26.5% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, BABA is stronger. BABA posts a 41.7% operating margin, 23.1% return on equity and 22.4% return on invested capital. F posts 29.3%, 14.7% and 30.3% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

BABA has the safer balance sheet. BABA carries net-debt/EBITDA of -2.45x with a current ratio of 2.91, versus 3.57x and 3.39 for F. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year BABA returned 114.9% against 52.3% for F; on a three-year annualised basis it is 41.6% vs 22.3%. BABA yields 2.3% and F yields 0.0%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, F is the better fit on today's multiples. Growth investors will likely prefer F, which is expanding faster. Income investors should lean toward BABA for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour BABA for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: F
• Growth: F
• Income: BABA
• Quality: BABA

Frequently asked questions

Is BABA or F the better buy right now?

Neither is universally "better." BABA scores 4 and F scores 2 on our six-factor framework. F is cheaper, F grows faster, and BABA is higher quality — so the right pick depends on your objective.

Which stock is cheaper, BABA or F?

F is the cheaper stock across forward P/E (22.12 vs 30.96), EV/EBITDA (21.41 vs 7.97) and price-to-sales (13.99 vs 4.13).

Which has grown faster, BABA or F?

F has the stronger growth profile, with three-year revenue CAGR of 5.1% for BABA versus 22.7% for F.

Which stock pays a bigger dividend?

BABA yields 2.3% and F yields 0.0%, so BABA is the stronger income choice.

Related comparisons

• AMZN vs BABA
• AMZN vs F
• BABA vs LCID
• RIVN vs BABA
• RIVN vs F
• TSLA vs BABA