Alibaba Group Holding Ltd (BABA)vsChoice Hotels International Inc (CHH)
BABA
Alibaba Group Holding Ltd
$121.06
-3.88%
CONSUMER CYCLICAL · Cap: $270.36B
CHH
Choice Hotels International Inc
$109.81
+0.77%
CONSUMER CYCLICAL · Cap: $4.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 103529% more annual revenue ($1.02T vs $987.82M). CHH leads profitability with a 35.0% profit margin vs 10.1%. 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+
CHH
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.2%
Fair Value
$382.49
Current Price
$121.06
$261.43 discount
Margin of Safety
-75.6%
Fair Value
$62.08
Current Price
$109.81
$47.73 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 252 in profit
Keeps 35 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 27.8%
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
3.5% revenue growth
Trading at 36.1x book value
Earnings declined 53.2%
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 : CHH
The strongest argument for CHH centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 35.0% and operating margin at 27.8%.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : CHH
The primary concerns for CHH are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 15.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
CHH carries more volatility with a beta of 0.68 — expect wider price swings.
CHH is growing revenue faster at 3.5% — sustainability is the question.
CHH generates stronger free cash flow (-33M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BABA scores higher overall (64/100 vs 54/100). 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.
Choice Hotels International Inc
CONSUMER CYCLICAL · LODGING · USA
Choice Hotels International, Inc. is a global hotel franchisor. The company is headquartered in Rockville, Maryland.
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