WallStSmart

Alibaba Group Holding Ltd (BABA)vsDennys Corp (DENN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 222279% more annual revenue ($1.02T vs $457.21M). BABA leads profitability with a 8.9% profit margin vs 2.2%. BABA appears more attractively valued with a PEG of 0.80. 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

DENN

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 6.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.08
IV

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
DENNUndervalued (+15.2%)

Margin of Safety

+15.2%

Fair Value

$7.37

Current Price

$6.25

$1.12 discount

UndervaluedFair: $7.37Overvalued

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

DENN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-12.7410/10

Conservative balance sheet, low leverage

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

DENN4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Market CapQuality
$321.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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 : DENN

The strongest argument for DENN centers on Debt/Equity. PEG of 1.06 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 : DENN

The primary concerns for DENN are P/E Ratio, Revenue Growth, Market Cap. Thin 2.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

DENN carries more volatility with a beta of 1.37 — expect wider price swings.

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

DENN generates stronger free cash flow (7M), providing more financial flexibility.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BABA scores higher overall (50/100 vs 41/100). DENN offers better value entry with a 15.2% 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.

Dennys Corp

CONSUMER CYCLICAL · RESTAURANTS · USA

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. The company is headquartered in Spartanburg, South Carolina.

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