WallStSmart

Alibaba Group Holding Ltd (BABA)vsAlphabet Inc Class A (GOOGL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 152% more annual revenue ($1.02T vs $402.84B). GOOGL leads profitability with a 32.8% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 0.80. GOOGL earns a higher WallStSmart Score of 70/100 (B).

BABA

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

GOOGL

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 6.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+72.8%)

Margin of Safety

+72.8%

Fair Value

$560.44

Current Price

$131.50

$428.94 discount

UndervaluedFair: $560.44Overvalued
GOOGLUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$619.09

Current Price

$385.69

$233.40 discount

UndervaluedFair: $619.09Overvalued

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

GOOGL6 strengths · Avg: 10.0/10
Market CapQuality
$4.66T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
31.6%10/10

Strong operational efficiency at 31.6%

Free Cash FlowQuality
$18.95B10/10

Generating 19.0B in free cash flow

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

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

GOOGL3 concerns · Avg: 3.3/10
P/E RatioValuation
29.3x4/10

Moderate valuation

Price/BookValuation
11.2x4/10

Trading at 11.2x book value

PEG RatioValuation
2.632/10

Expensive relative to growth rate

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 : GOOGL

The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.

Bear Case : GOOGL

The primary concerns for GOOGL are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

BABA profiles as a value stock while GOOGL is a growth play — different risk/reward profiles.

GOOGL carries more volatility with a beta of 1.13 — expect wider price swings.

GOOGL is growing revenue faster at 18.0% — sustainability is the question.

GOOGL generates stronger free cash flow (19.0B), providing more financial flexibility.

Bottom Line

GOOGL scores higher overall (70/100 vs 50/100), backed by strong 32.8% margins and 18.0% revenue growth. BABA offers better value entry with a 72.8% 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.

Alphabet Inc Class A

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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