Alibaba and Amazon are in the right business at the right time. And they both have their own formulas of success that have delivered hefty returns to their stockholders. Alibaba shares have gained 63.97% in the past twelve months and 146.15% over the last two years, while Amazon’s shares have gained 67.76% and 121.44% over the same period. Company 12-months 2-years Alibaba (BABA) 63.97% 146.15% Amazon (AMZN) 67.76 121.44Source: Finance.yahoo.com 5/4/2018While it’s unclear which of the two companies will deliver better performance to its stockholders in the long run, one thing is clear: Alibaba’s formula of success consistently beats Amazon’s in a key metric: operating margins. Alibaba vs Amazon metrics as 5/4/2018Company Total Revenue (ttm) Revenue per share (ttm) Operating Margins Quarterly Earnings Growth Alibaba $36.00B $14.14 31.28% 34.80% Amazon $177.87B 370.55 2.31 147.90Source: Finance.yahoo.comAlibaba vs Amazon metrics as 8/21/2017Company Total Revenue (ttm) Revenue per share (ttm) Operating Margins Quarterly Earnings Growth Alibaba $26.42B $10.52 32.68% 94.50% Amazon $150.12B 314.52 2.31 -77.00Source: Finance.yahoo.comAlibaba vs Amazon metrics as 1/28/2015Company Total Revenue (ttm) Revenue per share (ttm) Operating Margins Quarterly Earnings Growth Alibaba $10.09B $4.59 42.15% -38.7% Amazon $85.25B $185.02 0.12 - -Source: Finance.yahoo.comSimply put, Alibaba’s business model is more profitable than that of Amazon, due to a key difference in the ways the two companies approach and monetize e-commerce.

Source: Forbes May 06, 2018 23:37 UTC