Accolade (NASDAQ:ACCD – Get Free Report) and Alibaba Group (NYSE:BABA – Get Free Report) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Volatility and Risk
Accolade has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Insider and Institutional Ownership
85.0% of Accolade shares are owned by institutional investors. Comparatively, 13.5% of Alibaba Group shares are owned by institutional investors. 8.2% of Accolade shares are owned by insiders. Comparatively, 12.5% of Alibaba Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accolade | 0 | 3 | 11 | 0 | 2.79 |
| Alibaba Group | 0 | 2 | 13 | 0 | 2.87 |
Accolade currently has a consensus target price of $8.96, suggesting a potential upside of 163.48%. Alibaba Group has a consensus target price of $114.07, suggesting a potential upside of 33.38%. Given Accolade’s higher probable upside, equities research analysts clearly believe Accolade is more favorable than Alibaba Group.
Earnings & Valuation
This table compares Accolade 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 | |
| Accolade | $441.03 million | 0.62 | -$99.81 million | ($1.03) | -3.30 |
| Alibaba Group | $961.96 billion | 0.21 | $11.08 billion | $4.93 | 17.35 |
Alibaba Group has higher revenue and earnings than Accolade. Accolade is trading at a lower price-to-earnings ratio than Alibaba Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Accolade and Alibaba Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accolade | -18.16% | -18.43% | -10.35% |
| Alibaba Group | 8.98% | 12.28% | 7.44% |
Summary
Alibaba Group beats Accolade on 10 of the 14 factors compared between the two stocks.
About Accolade
Accolade, Inc., together with its subsidiaries, engages in the development and provision of personalized and technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. The company offers a platform with cloud-based intelligent technology and multimodal support from a team of advocates and clinicians, including registered nurses, physician medical directors, pharmacists, behavioral health specialists, women’s health specialists, case management specialists, expert medical opinion providers, and primary care physicians. It also provides medical opinion services to commercial customers; and navigation, care, and advocacy solutions. In addition, the company offers medical consultations that connect patients to qualified condition-specific specialists for adult and pediatric care; and primary care and mental health support solutions. It serves employers who provide employees and their families a single place to turn for their health, healthcare, and benefits needs. The company was incorporated in 2007 and is headquartered in Seattle, Washington.
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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