Alibaba Group Holding Ltd (BABA)vsThe Cheesecake Factory (CAKE)
BABA
Alibaba Group Holding Ltd
$121.06
-3.88%
CONSUMER CYCLICAL · Cap: $270.36B
CAKE
The Cheesecake Factory
$66.13
+3.59%
CONSUMER CYCLICAL · Cap: $3.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 26814% more annual revenue ($1.02T vs $3.80B). BABA leads profitability with a 10.1% profit margin vs 4.3%. BABA appears more attractively valued with a PEG of 0.39. BABA earns a higher WallStSmart Score of 64/100 (C+).
BABA
Buy64
out of 100
Grade: C+
CAKE
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.0%
Fair Value
$380.73
Current Price
$121.06
$259.67 discount
Margin of Safety
-2.6%
Fair Value
$60.01
Current Price
$66.13
$6.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Earnings expanding 104.1% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 36 in profit
Earnings expanding 52.2% YoY
Areas to Watch
2.9% revenue growth
Operating margin of 1.0%
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Grey zone — moderate risk
4.3% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 suggests the stock is reasonably priced for its growth.
Bull Case : CAKE
The strongest argument for CAKE centers on Return on Equity, EPS Growth.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : CAKE
The primary concerns for CAKE are PEG Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.66 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
CAKE carries more volatility with a beta of 1.04 — expect wider price swings.
CAKE is growing revenue faster at 5.6% — sustainability is the question.
CAKE generates stronger free cash flow (52M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BABA scores higher overall (64/100 vs 62/100). 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.
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.
The Cheesecake Factory
CONSUMER CYCLICAL · RESTAURANTS · USA
Cheesecake Factory Incorporated operates restaurants. The company is headquartered in Calabasas, California.
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