Alibaba Group Holding Limited (BABA) vs Costco Wholesale Corporation (COST)
A side-by-side comparison of Alibaba Group Holding Limited and Costco Wholesale Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 10, 2026. Differences are shown without an overall score or investment verdict.
Different business models: BABA is classified in Consumer Cyclical; COST is classified in Consumer Defensive. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
BABA
Alibaba Group Holding Limited
$109.30Consumer CyclicalDelayed quote: Sep 11, 2026, 4:01 PM EDT
COST
Costco Wholesale Corporation
$904.77Consumer DefensiveDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — BABA vs COST
growth of $100 · dividends reinvested · last 10yBABA +12.7% (+1.2%/yr)COST +528.3% (+20.2%/yr)COST compounded faster over this window
Log scale — wide-divergence pair
BABA COST
BABA vs COST: by the numbers
- •COST is the larger company ($401.25B vs $261.98B market cap).
- •BABA trades at the lower trailing earnings multiple (25.88 vs 45.51 P/E), one valuation lens rather than an overall verdict.
- •BABA converts more revenue to profit (7.02% vs 3.01% net margin).
- •COST grew revenue faster over the past five years (9.48% vs 5.11% CAGR).
- •BABA pays the higher dividend yield (0.97% vs 0.61%).
Metrics side by side
Valuation
| Metric | BABA | COST |
|---|---|---|
| P/E ratio | 25.88 | 45.51 |
| Forward P/E | N/A | 39.92 |
| P/S ratio | 1.74 | 1.37 |
| P/B ratio | 1.70 | 11.97 |
| EV / EBITDA | 31.14 | 28.32 |
| FCF yield | N/A | 2.19% |
Profitability
| Metric | BABA | COST |
|---|---|---|
| Gross margin | 38.12% | 12.88% |
| Operating margin | 4.23% | 3.82% |
| Net margin | 7.02% | 3.01% |
| ROE | 6.83% | 26.38% |
| ROIC | 1.99% | 19.01% |
Dividends
| Metric | BABA | COST |
|---|---|---|
| Dividend yield | 0.97% | 0.61% |
| Payout ratio | 24.87% | 27.87% |
Growth (annualized)
| Metric | BABA | COST |
|---|---|---|
| Revenue CAGR (5Y) | 5.11% | 9.48% |
| EPS CAGR (5Y) | -4.87% | 15.04% |
| FCF CAGR (5Y) | -62.38% | 4.95% |
| Total return CAGR (5Y) | -7.24% | 14.89% |
Frequently asked
- Which has the lower trailing P/E, BABA or COST?
- BABA has the lower trailing P/E: BABA trades at 25.88 and COST at 45.51. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, BABA or COST?
- Over the past five years, COST grew revenue faster — BABA at a 5.11% CAGR versus COST at 9.48%.
- Does BABA or COST pay a bigger dividend?
- BABA yields 0.97% and COST yields 0.61% based on trailing dividends and the latest price.
- Is BABA or COST more profitable?
- BABA runs the higher net margin — BABA at 7.02% versus COST at 3.01%.
- How have BABA and COST total returns compared?
- Over the past 10 years, BABA delivered 1.49% and COST delivered 20.56% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Alibaba Group P/E ratioCostco Wholesale P/E ratioAlibaba Group dividend yieldCostco Wholesale dividend yieldAlibaba Group ROECostco Wholesale ROEAlibaba Group operating marginCostco Wholesale operating marginAlibaba Group revenue growthCostco Wholesale revenue growthAlibaba Group free cash flowCostco Wholesale free cash flow
Alibaba Group & Costco Wholesale appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 10, 2026.