AutoNation Inc (AN)vsAlibaba Group Holding Ltd (BABA)
AN
AutoNation Inc
$203.38
-0.94%
CONSUMER CYCLICAL · Cap: $7.22B
BABA
Alibaba Group Holding Ltd
$136.42
+0.77%
CONSUMER CYCLICAL · Cap: $336.63B
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
Buy58
out of 100
Grade: C
BABA
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.4%
Fair Value
$151.23
Current Price
$203.38
$52.15 premium
Margin of Safety
+73.0%
Fair Value
$563.92
Current Price
$136.42
$427.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
1.3% earnings growth
2.4% margin — thin
Operating margin of 4.0%
Weak financial health signals
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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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