Alibaba Group Holding Ltd (BABA)vsMGM Resorts International (MGM)
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
MGM
MGM Resorts International
$38.94
-0.84%
CONSUMER CYCLICAL · Cap: $10.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 5697% more annual revenue ($1.02T vs $17.54B). BABA leads profitability with a 8.9% profit margin vs 1.2%. BABA appears more attractively valued with a PEG of 0.80. MGM earns a higher WallStSmart Score of 65/100 (C+).
BABA
Buy50
out of 100
Grade: C-
MGM
Buy65
out of 100
Grade: C+
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
+61.6%
Fair Value
$94.60
Current Price
$38.94
$55.66 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
Earnings expanding 115.7% YoY
Growing faster than its price suggests
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
1.2% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Elevated debt levels
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 : MGM
The strongest argument for MGM centers on EPS Growth, PEG Ratio. PEG of 0.97 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 : MGM
The primary concerns for MGM are Profit Margin, P/E Ratio, Altman Z-Score. A P/E of 51.7x leaves little room for execution misses. Debt-to-equity of 23.11 is elevated, increasing financial risk.
Key Dynamics to Monitor
MGM carries more volatility with a beta of 1.35 — expect wider price swings.
MGM is growing revenue faster at 6.0% — sustainability is the question.
MGM generates stronger free cash flow (536M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MGM scores higher overall (65/100 vs 50/100). 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.
MGM Resorts International
CONSUMER CYCLICAL · RESORTS & CASINOS · USA
MGM Resorts International is an American global hospitality and entertainment company operating destination resorts globally.
Visit Website →Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?