Alibaba Group Holding Ltd (BABA)vsH&R Block Inc (HRB)
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
HRB
H&R Block Inc
$31.43
-0.25%
CONSUMER CYCLICAL · Cap: $3.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 26723% more annual revenue ($1.02T vs $3.79B). HRB leads profitability with a 16.2% profit margin vs 8.9%. HRB appears more attractively valued with a PEG of 0.59. HRB earns a higher WallStSmart Score of 67/100 (B-).
BABA
Buy50
out of 100
Grade: C-
HRB
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.9%
Fair Value
$562.19
Current Price
$131.88
$430.31 discount
Margin of Safety
+5.7%
Fair Value
$31.63
Current Price
$31.43
$0.20 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 68 in profit
Growing faster than its price suggests
Earnings expanding 21.6% YoY
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
Grey zone — moderate risk
Negative free cash flow — burning cash
Operating margin of -150.3%
Comparative Analysis Report
WallStSmart ResearchBull 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 : HRB
The strongest argument for HRB centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at -150.3%. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.
Bear Case : HRB
The primary concerns for HRB are Altman Z-Score, Free Cash Flow, Operating Margin.
Key Dynamics to Monitor
BABA profiles as a value stock while HRB is a mature play — different risk/reward profiles.
BABA carries more volatility with a beta of 0.49 — expect wider price swings.
HRB is growing revenue faster at 11.1% — sustainability is the question.
HRB generates stronger free cash flow (-649M), providing more financial flexibility.
Bottom Line
HRB scores higher overall (67/100 vs 50/100), backed by strong 16.2% margins and 11.1% revenue growth. BABA offers better value entry with a 72.9% 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.
H&R Block Inc
CONSUMER CYCLICAL · PERSONAL SERVICES · USA
H&R Block, Inc., provides services and products for assisted preparation of income tax returns and self-preparation of income tax returns (DIY) to the general public, primarily in the United States, Canada and Australia. The company is headquartered in Kansas City, Missouri.
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