Alibaba Group Holding Ltd (BABA)vsFerrari NV (RACE)
BABA
Alibaba Group Holding Ltd
$95.98
-3.88%
CONSUMER CYCLICAL · Cap: $242.55B
RACE
Ferrari NV
$368.34
+1.07%
CONSUMER CYCLICAL · Cap: $64.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 14112% more annual revenue ($1.02T vs $7.20B). RACE leads profitability with a 22.2% profit margin vs 10.1%. BABA appears more attractively valued with a PEG of 0.36. BABA earns a higher WallStSmart Score of 64/100 (C+).
BABA
Buy64
out of 100
Grade: C+
RACE
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.0%
Fair Value
$380.73
Current Price
$95.98
$284.75 discount
Margin of Safety
-50.9%
Fair Value
$244.05
Current Price
$368.34
$124.29 premium
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 104.1% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Every $100 of equity generates 39 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.5%
Areas to Watch
2.9% revenue growth
Operating margin of 1.0%
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 13.9x book value
3.2% revenue growth
1.3% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.36 suggests the stock is reasonably priced for its growth.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 29.5%.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
RACE carries more volatility with a beta of 0.59 — expect wider price swings.
RACE is growing revenue faster at 3.2% — sustainability is the question.
RACE generates stronger free cash flow (732M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BABA scores higher overall (64/100 vs 50/100). 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.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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