WallStSmart

Alibaba Group Holding Ltd (BABA)vsCarvana Co (CVNA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 4070% more annual revenue ($1.04T vs $25.06B). BABA leads profitability with a 7.0% profit margin vs 6.3%. BABA trades at a lower P/E of 25.6x. CVNA earns a higher WallStSmart Score of 60/100 (C+).

BABA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 8.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

CVNA

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 3.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$365.09

Current Price

$109.30

$255.79 discount

UndervaluedFair: $365.09Overvalued
CVNASignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$46.33

Current Price

$70.84

$24.52 premium

UndervaluedFair: $46.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA4 strengths · Avg: 8.8/10
Market CapQuality
$281.47B10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

CVNA4 strengths · Avg: 9.8/10
Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

Revenue GrowthGrowth
52.4%10/10

Revenue surging 52.4% year-over-year

EPS GrowthGrowth
61.5%10/10

Earnings expanding 61.5% YoY

Market CapQuality
$77.90B9/10

Large-cap with strong market position

Areas to Watch

BABA4 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

CVNA4 concerns · Avg: 3.5/10
P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.7x4/10

Trading at 12.7x book value

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.403/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 52.4% demonstrates continued momentum.

Bear Case : BABA

The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.

Bear Case : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

Key Dynamics to Monitor

BABA profiles as a value stock while CVNA is a hypergrowth play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.50 — expect wider price swings.

CVNA is growing revenue faster at 52.4% — sustainability is the question.

CVNA generates stronger free cash flow (187M), providing more financial flexibility.

Bottom Line

CVNA scores higher overall (60/100 vs 55/100) and 52.4% revenue growth. BABA offers better value entry with a 58.3% 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.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

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