WallStSmart

Alibaba Group Holding Ltd (BABA)vsLegacy Housing Corp (LEGH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 617730% more annual revenue ($1.02T vs $164.57M). LEGH leads profitability with a 25.4% profit margin vs 8.9%. LEGH appears more attractively valued with a PEG of 0.61. LEGH earns a higher WallStSmart Score of 59/100 (C).

BABA

Buy

50

out of 100

Grade: C-

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

LEGH

Buy

59

out of 100

Grade: C

Growth: 2.0Profit: 8.0Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$562.19

Current Price

$131.88

$430.31 discount

UndervaluedFair: $562.19Overvalued
LEGHSignificantly Overvalued (-42.8%)

Margin of Safety

-42.8%

Fair Value

$15.15

Current Price

$21.75

$6.60 premium

UndervaluedFair: $15.15Overvalued

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

LEGH5 strengths · Avg: 8.6/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
25.4%9/10

Keeps 25 of every $100 in revenue as profit

PEG RatioValuation
0.618/10

Growing faster than its price suggests

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

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

LEGH3 concerns · Avg: 2.3/10
Market CapQuality
$514.11M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-29.4%2/10

Revenue declined 29.4%

EPS GrowthGrowth
-41.8%2/10

Earnings declined 41.8%

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 : LEGH

The strongest argument for LEGH centers on Price/Book, Profit Margin, PEG Ratio. Profitability is solid with margins at 25.4% and operating margin at 26.9%. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

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

Bear Case : LEGH

The primary concerns for LEGH are Market Cap, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

BABA profiles as a value stock while LEGH is a declining play — different risk/reward profiles.

LEGH carries more volatility with a beta of 0.77 — expect wider price swings.

BABA is growing revenue faster at 1.7% — sustainability is the question.

LEGH generates stronger free cash flow (16M), providing more financial flexibility.

Bottom Line

LEGH scores higher overall (59/100 vs 50/100), backed by strong 25.4% margins. BABA offers better value entry with a 72.9% margin of safety. Both earn "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.

Legacy Housing Corp

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny homes primarily in the southern United States. The company is headquartered in Bedford, Texas.

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