Alibaba Group Holding Ltd (BABA)vsBorgWarner Inc (BWA)
BABA
Alibaba Group Holding Ltd
$122.69
-2.17%
CONSUMER CYCLICAL · Cap: $292.91B
BWA
BorgWarner Inc
$54.24
-0.95%
CONSUMER CYCLICAL · Cap: $11.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 7002% more annual revenue ($1.02T vs $14.32B). BABA leads profitability with a 8.9% profit margin vs 1.9%. BWA appears more attractively valued with a PEG of 0.46. BWA earns a higher WallStSmart Score of 55/100 (C).
BABA
Hold49
out of 100
Grade: D+
BWA
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-299.2%
Fair Value
$38.15
Current Price
$122.69
$84.54 premium
Margin of Safety
-659.8%
Fair Value
$8.70
Current Price
$54.24
$45.54 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 36.0B in free cash flow
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
1.7% revenue growth
Earnings declined 70.9%
3.9% revenue growth
ROE of 5.9% — below average capital efficiency
1.9% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.
Bull Case : BWA
The strongest argument for BWA centers on PEG Ratio, Price/Book. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : BWA
The primary concerns for BWA are Revenue Growth, Return on Equity, Profit Margin. A P/E of 42.4x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
BWA carries more volatility with a beta of 1.02 — expect wider price swings.
BWA is growing revenue faster at 3.9% — sustainability is the question.
BABA generates stronger free cash flow (36.0B), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BWA scores higher overall (55/100 vs 49/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
BorgWarner Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
BorgWarner Inc. is an American multinational automotive supplier headquartered in Auburn Hills, Michigan.
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