WallStSmart

Alibaba Group Holding Ltd (BABA)vsCallaway Golf Company (CALY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 49254% more annual revenue ($1.02T vs $2.06B). BABA leads profitability with a 8.9% profit margin vs -19.9%. CALY appears more attractively valued with a PEG of 0.72. BABA earns a higher WallStSmart Score of 50/100 (C-).

BABA

Buy

50

out of 100

Grade: C-

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

CALY

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 3.0Value: 6.0Quality: 5.0
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$562.19

Current Price

$131.88

$430.31 discount

UndervaluedFair: $562.19Overvalued
CALYUndervalued (+23.6%)

Margin of Safety

+23.6%

Fair Value

$19.70

Current Price

$15.16

$4.54 discount

UndervaluedFair: $19.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA3 strengths · Avg: 8.7/10
Market CapQuality
$321.85B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

CALY2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.728/10

Growing faster than its price suggests

Areas to Watch

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

CALY4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
1.7%3/10

ROE of 1.7% — below average capital efficiency

P/E RatioValuation
72.9x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-60.2%2/10

Revenue declined 60.2%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : CALY

The strongest argument for CALY centers on Price/Book, PEG Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

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

Bear Case : CALY

The primary concerns for CALY are EPS Growth, Return on Equity, P/E Ratio. A P/E of 72.9x leaves little room for execution misses.

Key Dynamics to Monitor

BABA profiles as a value stock while CALY is a turnaround play — different risk/reward profiles.

CALY carries more volatility with a beta of 0.96 — expect wider price swings.

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

CALY generates stronger free cash flow (-116M), providing more financial flexibility.

Bottom Line

BABA scores higher overall (50/100 vs 46/100). CALY offers better value entry with a 23.6% margin of safety. 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.

Callaway Golf Company

CONSUMER CYCLICAL · LEISURE · USA

Callaway Golf Company designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The company is headquartered in Carlsbad, California.

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