Alibaba Group Holding Ltd (BABA)vsCarMax Inc (KMX)
BABA
Alibaba Group Holding Ltd
$101.50
+3.53%
CONSUMER CYCLICAL · Cap: $249.37B
KMX
CarMax Inc
$56.42
+1.51%
CONSUMER CYCLICAL · Cap: $7.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 3447% more annual revenue ($1.04T vs $29.46B). BABA leads profitability with a 7.0% profit margin vs 1.0%. BABA appears more attractively valued with a PEG of 0.46. KMX earns a higher WallStSmart Score of 65/100 (B-).
BABA
Buy55
out of 100
Grade: C-
KMX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+65.0%
Fair Value
$435.28
Current Price
$101.50
$333.78 discount
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Conservative balance sheet, low leverage
Reasonable price relative to book value
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Earnings declined 79.4%
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Debt/Equity. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.68 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are Return on Equity, Profit Margin, Piotroski F-Score.
Bear Case : KMX
The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
BABA profiles as a value stock while KMX is a growth play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.23 — expect wider price swings.
KMX is growing revenue faster at 17.7% — sustainability is the question.
KMX generates stronger free cash flow (806M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 55/100) and 17.7% revenue growth. BABA offers better value entry with a 65.0% 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.
CarMax Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.
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