WallStSmart

AutoNation Inc (AN)vsAlibaba Group Holding Ltd (BABA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 3580% more annual revenue ($1.02T vs $27.63B). BABA leads profitability with a 8.9% profit margin vs 2.4%. AN appears more attractively valued with a PEG of 0.74. AN earns a higher WallStSmart Score of 58/100 (C).

AN

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 6.0Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

BABA

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANSignificantly Overvalued (-37.4%)

Margin of Safety

-37.4%

Fair Value

$151.23

Current Price

$203.38

$52.15 premium

UndervaluedFair: $151.23Overvalued
BABAUndervalued (+73.0%)

Margin of Safety

+73.0%

Fair Value

$563.92

Current Price

$136.42

$427.50 discount

UndervaluedFair: $563.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

BABA3 strengths · Avg: 8.7/10
Market CapQuality
$336.63B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

AN4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

BABA3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

EPS GrowthGrowth
-70.9%2/10

Earnings declined 70.9%

Free Cash FlowQuality
$-32.37B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on Altman Z-Score, Return on Equity, PEG Ratio. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

AN carries more volatility with a beta of 0.81 — expect wider price swings.

BABA is growing revenue faster at 1.7% — sustainability is the question.

AN generates stronger free cash flow (64M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AN scores higher overall (58/100 vs 50/100). BABA offers better value entry with a 73.0% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

Alibaba Group Holding Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

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