Head to Head Comparison: Altaba (NASDAQ:AABA) versus Its Peers

Altaba (NASDAQ: AABA) is one of 547 public companies in the “Closed End Funds” industry, but how does it contrast to its peers? We will compare Altaba to similar businesses based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Volatility & Risk

Altaba has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Altaba’s peers have a beta of 0.55, meaning that their average stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Altaba and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altaba -0.29% 0.77% 0.50%
Altaba Competitors -14.75% 7.58% 5.80%

Earnings & Valuation

This table compares Altaba and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Altaba $5.17 billion -$214.32 million 36.53
Altaba Competitors $238.76 million $44.95 million 297.97

Altaba has higher revenue, but lower earnings than its peers. Altaba is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

79.9% of Altaba shares are owned by institutional investors. Comparatively, 23.5% of shares of all “Closed End Funds” companies are owned by institutional investors. 24.0% of Altaba shares are owned by company insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Altaba and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altaba 0 12 7 0 2.37
Altaba Competitors 237 1575 1938 33 2.47

Altaba presently has a consensus price target of $51.69, indicating a potential downside of 24.33%. As a group, “Closed End Funds” companies have a potential upside of 50.94%. Given Altaba’s peers stronger consensus rating and higher probable upside, analysts clearly believe Altaba has less favorable growth aspects than its peers.

Summary

Altaba peers beat Altaba on 8 of the 13 factors compared.

Altaba Company Profile

Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.

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