Alibaba Group Holding Ltd (BABA)vsThe Gap, Inc. (GAP)
BABA
Alibaba Group Holding Ltd
$109.30
+0.68%
CONSUMER CYCLICAL · Cap: $281.47B
GAP
The Gap, Inc.
$21.51
+2.87%
CONSUMER CYCLICAL · Cap: $7.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 6718% more annual revenue ($1.04T vs $15.33B). GAP leads profitability with a 8.1% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.52. GAP earns a higher WallStSmart Score of 68/100 (B-).
BABA
Buy55
out of 100
Grade: C-
GAP
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.3%
Fair Value
$365.09
Current Price
$109.30
$255.79 discount
Margin of Safety
-24.0%
Fair Value
$22.14
Current Price
$21.51
$0.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Earnings expanding 142.1% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Areas to Watch
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
GAP generates stronger free cash flow (183M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (68/100 vs 55/100). BABA offers better value entry with a 58.3% 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.
The Gap, Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Gap, Inc. (GAP) is a leading global apparel retailer established in 1969, renowned for its strong portfolio of brands, including Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco and operating in over 40 countries, the company emphasizes quality, style, and value to cater to a diverse customer base. In response to the evolving retail environment, Gap is aggressively pursuing digital transformation and sustainability initiatives, focusing on enhancing its e-commerce capabilities and introducing innovative product offerings to drive growth and maintain its competitive edge in the marketplace.
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