Arcos Dorados Holdings Inc (ARCO)vsAlibaba Group Holding Ltd (BABA)
ARCO
Arcos Dorados Holdings Inc
$8.66
-4.73%
CONSUMER CYCLICAL · Cap: $1.82B
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 21633% more annual revenue ($1.02T vs $4.68B). BABA leads profitability with a 8.9% profit margin vs 4.5%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 60/100 (C).
ARCO
Buy60
out of 100
Grade: C
BABA
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.3%
Fair Value
$18.39
Current Price
$8.66
$9.73 discount
Margin of Safety
+72.9%
Fair Value
$562.19
Current Price
$131.88
$430.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
4.5% margin — thin
Weak financial health signals
Earnings declined 56.9%
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, PEG Ratio. Revenue growth of 10.7% demonstrates continued momentum. PEG of 0.54 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 0.80 suggests the stock is reasonably priced for its growth.
Bear Case : ARCO
The primary concerns for ARCO are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.77 is elevated, increasing financial risk. Thin 4.5% 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
ARCO carries more volatility with a beta of 0.49 — expect wider price swings.
ARCO is growing revenue faster at 10.7% — sustainability is the question.
ARCO generates stronger free cash flow (27M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (60/100 vs 50/100) and 10.7% revenue growth. BABA offers better value entry with a 72.9% 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.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →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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