Stock Showdown: Alibaba Group Holding Ltd (BABA) vs. eBay Inc (EBAY); Which is a Better Buy?

Although Ebay’s macro-economic picture and valuation is better than Alibaba’s at the current time, we like Alibaba more because it has larger potential in the long run. From a multi-decade perspective, China will grow faster than the U.S. will, and Chinese consumers will see their spending power grow faster. Because Alibaba has more exposure to China than Ebay does, Alibaba’s EPS will grow faster. eBay’s competition is also considerably stiffer than Alibaba’s competition. Whereas eBay has to contend with Amazon.com, Inc. (NASDAQ:AMZN), a $280 billion margin destroying machine, Alibaba just has to ward off JD.Com Inc (ADR) (NASDAQ:JD), a $37 billion market cap company.

Disclosure: none