Which Is a Better Investment, Alibaba Group Holding Ltd - ADR or Vipshop Holdings Ltd - ADR Stock?

By Eunice Kim
September 02, 2026
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Sifting through countless of stocks in the Broadline Retail industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Vipshop Holdings Limited or Alibaba Group Holding Limited because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Vipshop Holdings Limited and Alibaba Group Holding Limited compare based on key financial metrics to determine which better meets your investment needs.

About Vipshop Holdings Limited and Alibaba Group Holding Limited

Vipshop Holdings Limited operates online platforms in the People's Republic of China. The company operates through Vip.com, Shan Shan Outlets, and Others segments. It provides womenswear, menswear, sportswear and sporting goods, baby and children products, shoes and bags, skincare and cosmetics, home goods and other lifestyle products, and supermarket and other products. The company also engages in warehousing, retail business, product procurement, and software development and information technology support activities. It provides branded products through its vip.com and vipshop.com online platforms, as well as through retail stores. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses in the People's Republic of China and internationally. It operates through the Alibaba China E-Commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and All Others segments. The Alibaba China E-commerce Group segment operates Taobao and Tmall, which are digital retail platforms; Taobao Instant Commerce, a local services and on-demand delivery platform; 1688.com, a domestic wholesale marketplace; and Xianyu, a consumer-to-consumer community and marketplace for idle goods. Its Alibaba International Digital Commerce Group segment includes AliExpress, a global e-commerce platform; Trendyol, an e-commerce platform in Turkey; Lazada, an e-commerce platform in Southeast Asia; Daraz, an e-commerce platform in South Asia, primarily in Pakistan and Bangladesh; and Alibaba.com, an integrated international online wholesale marketplace. The Cloud Intelligence Group segment offers a suite of cloud services based on infrastructure-as-a-service, platform-as-a-service, and model-as-a-service. Its All Others segment comprises Amap, a provider of mobile digital maps, navigation, and real-time traffic information in China; Cainiao, which provides logistics solutions; Youku, an online long-form video platform in China; Freshippo, a retail platform for groceries and fresh goods; and Alibaba Health, a pharmaceutical and healthcare services platform. Alibaba Group Holding Limited was incorporated in 1999 and is based in Hangzhou, China.

Latest Broadline Retail and Vipshop Holdings Limited, Alibaba Group Holding Limited Stock News

As of September 1, 2026, Vipshop Holdings Limited had a $7.2 billion market capitalization, compared to the Broadline Retail median of $5.8 million. Vipshop Holdings Limited’s stock is NA in 2026, NA in the previous five trading days and down 21.74% in the past year.

Currently, Vipshop Holdings Limited’s price-earnings ratio is 6.1. Vipshop Holdings Limited’s trailing 12-month revenue is $15.4 billion with a 9.8% net profit margin. Year-over-year quarterly sales growth most recently was -15.4%. Analysts expect adjusted earnings to reach $1.980 per share for the current fiscal year. Vipshop Holdings Limited currently has a 4.7% dividend yield.

Currently, Alibaba Group Holding Limited’s price-earnings ratio is 17.7. Alibaba Group Holding Limited’s trailing 12-month revenue is $148.4 billion with a 7.0% net profit margin. Year-over-year quarterly sales growth most recently was 8.3%. Analysts expect adjusted earnings to reach $6.620 per share for the current fiscal year. Alibaba Group Holding Limited currently has a 0.9% dividend yield.

How We Compare Vipshop Holdings Limited and Alibaba Group Holding Limited Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Vipshop Holdings Limited and Alibaba Group Holding Limited’s stock grades to see how they measure up against one another.

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Vipshop Holdings Limited and Alibaba Group Holding Limited Stock Value Grades

Company Ticker Value
Vipshop Holdings Limited VIPS A
Alibaba Group Holding Limited BABA C

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Vipshop Holdings Limited has a Value Score of 99, which is Deep Value. Alibaba Group Holding Limited has a Value Score of 44, which is Average.

The Value Stock Winner: Vipshop Holdings Limited

As you can clearly see from the Value Grade breakdown above, Vipshop Holdings Limited is considered to have better value than Alibaba Group Holding Limited. For investors who focus solely on a company’s valuation, Vipshop Holdings Limited could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Vipshop Holdings Limited and Alibaba Group Holding Limited’s Quality Grades

Company Ticker Quality
Vipshop Holdings Limited VIPS B
Alibaba Group Holding Limited BABA D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Vipshop Holdings Limited has a Quality Score of 80, which is Strong. Alibaba Group Holding Limited has a Quality Score of 37, which is Weak.

The Quality Grade Winner: Vipshop Holdings Limited

As you can clearly see from the Quality Grade breakdown above, Vipshop Holdings Limited has a better overall quality grade than Alibaba Group Holding Limited. For investors who are looking for companies with higher quality than others in the same industry, Vipshop Holdings Limited could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Vipshop Holdings Limited and Alibaba Group Holding Limited’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Vipshop Holdings Limited VIPS D
Alibaba Group Holding Limited BABA D

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Vipshop Holdings Limited has a Earnings Estimate Score of 27, which is Negative. Alibaba Group Holding Limited has a Earnings Estimate Score of 31, which is Negative.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Vipshop Holdings Limited or Alibaba Group Holding Limited has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Vipshop Holdings Limited or Alibaba Group Holding Limited is the better investment when it comes to estimate revisions.

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Other Vipshop Holdings Limited and Alibaba Group Holding Limited Grades

In addition to Value, Quality and Estimate Revisions, A+ Investor also provides grades for Growth and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Vipshop Holdings Limited and Alibaba Group Holding Limited pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Vipshop Holdings Limited or Alibaba Group Holding Limited Stock?

Overall, Vipshop Holdings Limited stock has a Value Score of 99, Estimate Revisions Score of 27 and Quality Score of 80.

Alibaba Group Holding Limited stock has a Value Score of 44, Estimate Revisions Score of 31 and Quality Score of 37.

Comparing Vipshop Holdings Limited and Alibaba Group Holding Limited’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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