Alibaba Group Holding Ltd (BABA)vsDarden Restaurants Inc (DRI)
BABA
Alibaba Group Holding Ltd
$116.30
+1.10%
CONSUMER CYCLICAL · Cap: $275.57B
DRI
Darden Restaurants Inc
$206.97
-2.48%
CONSUMER CYCLICAL · Cap: $22.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 7649% more annual revenue ($1.02T vs $13.21B). BABA leads profitability with a 10.1% profit margin vs 9.1%. BABA appears more attractively valued with a PEG of 0.49. DRI earns a higher WallStSmart Score of 67/100 (B-).
BABA
Buy64
out of 100
Grade: C+
DRI
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.5%
Fair Value
$375.80
Current Price
$116.30
$259.50 discount
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$206.97
$94.67 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 55 in profit
Earnings expanding 36.0% YoY
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
Trading at 10.7x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.49 suggests the stock is reasonably priced for its growth.
Bull Case : DRI
The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, Free Cash Flow. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.58 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
DRI generates stronger free cash flow (-160M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 64/100) and 13.7% revenue growth. BABA offers better value entry with a 59.5% margin of safety. Both earn "Strong 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.
Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
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