WallStSmart

Alibaba Group Holding Ltd (BABA)vsMagna International Inc (MGA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 2320% more annual revenue ($1.02T vs $42.01B). BABA leads profitability with a 8.9% profit margin vs 2.0%. MGA appears more attractively valued with a PEG of 0.51. MGA earns a higher WallStSmart Score of 56/100 (C).

BABA

Hold

49

out of 100

Grade: D+

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

MGA

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 5.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABASignificantly Overvalued (-299.2%)

Margin of Safety

-299.2%

Fair Value

$38.15

Current Price

$122.69

$84.54 premium

UndervaluedFair: $38.15Overvalued
MGASignificantly Overvalued (-190.1%)

Margin of Safety

-190.1%

Fair Value

$19.92

Current Price

$54.38

$34.46 premium

UndervaluedFair: $19.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA3 strengths · Avg: 9.3/10
Market CapQuality
$292.91B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$36.03B10/10

Generating 36.0B in free cash flow

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

MGA3 strengths · Avg: 8.7/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.518/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.32B8/10

Generating 1.3B in free cash flow

Areas to Watch

BABA3 concerns · Avg: 3.3/10
PEG RatioValuation
1.994/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

EPS GrowthGrowth
-70.9%2/10

Earnings declined 70.9%

MGA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

EPS GrowthGrowth
-35.7%2/10

Earnings declined 35.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.

Bull Case : MGA

The strongest argument for MGA centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.51 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : MGA

The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

MGA carries more volatility with a beta of 1.83 — expect wider price swings.

MGA is growing revenue faster at 2.1% — sustainability is the question.

BABA generates stronger free cash flow (36.0B), providing more financial flexibility.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MGA scores higher overall (56/100 vs 49/100). Both earn "Buy" and "Hold" 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.

Magna International Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.

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