Alibaba Group Holding Ltd (BABA)vsChoice Hotels International Inc (CHH)
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
CHH
Choice Hotels International Inc
$117.36
-2.16%
CONSUMER CYCLICAL · Cap: $5.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 103587% more annual revenue ($1.02T vs $980.59M). CHH leads profitability with a 37.7% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 0.80. CHH earns a higher WallStSmart Score of 56/100 (C).
BABA
Buy50
out of 100
Grade: C-
CHH
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.9%
Fair Value
$562.19
Current Price
$131.88
$430.31 discount
Margin of Safety
-67.9%
Fair Value
$64.94
Current Price
$117.36
$52.42 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 54 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 45.0%
Attractively priced relative to earnings
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
Expensive relative to growth rate
2.4% revenue growth
Trading at 29.6x book value
Earnings declined 13.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : CHH
The strongest argument for CHH centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 37.7% and operating margin at 45.0%.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.
Bear Case : CHH
The primary concerns for CHH are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 11.11 is elevated, increasing financial risk.
Key Dynamics to Monitor
CHH carries more volatility with a beta of 0.75 — expect wider price swings.
CHH is growing revenue faster at 2.4% — sustainability is the question.
CHH generates stronger free cash flow (57M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CHH scores higher overall (56/100 vs 50/100), backed by strong 37.7% margins. 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.
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.
Choice Hotels International Inc
CONSUMER CYCLICAL · LODGING · USA
Choice Hotels International, Inc. is a global hotel franchisor. The company is headquartered in Rockville, Maryland.
Visit Website →Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?