Alibaba Group Holding Ltd (BABA)vsMeritage Corporation (MTH)
BABA
Alibaba Group Holding Ltd
$130.43
-0.32%
CONSUMER CYCLICAL · Cap: $321.85B
MTH
Meritage Corporation
$67.02
-3.39%
CONSUMER CYCLICAL · Cap: $4.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 18003% more annual revenue ($1.02T vs $5.62B). BABA leads profitability with a 8.9% profit margin vs 6.9%. MTH appears more attractively valued with a PEG of 0.54. MTH earns a higher WallStSmart Score of 57/100 (C).
BABA
Buy50
out of 100
Grade: C-
MTH
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.9%
Fair Value
$562.19
Current Price
$130.43
$431.76 discount
Margin of Safety
+22.6%
Fair Value
$100.85
Current Price
$67.02
$33.83 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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
ROE of 7.5% — below average capital efficiency
6.9% margin — thin
Weak financial health signals
Revenue declined 17.7%
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 : MTH
The strongest argument for MTH centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.54 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 : MTH
The primary concerns for MTH are Return on Equity, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
MTH carries more volatility with a beta of 1.51 — expect wider price swings.
BABA is growing revenue faster at 1.7% — sustainability is the question.
MTH generates stronger free cash flow (97M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MTH scores higher overall (57/100 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.
Meritage Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Meritage Homes Corporation designs and builds single-family homes in the United States. The company is headquartered in Scottsdale, Arizona.
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