WallStSmart

Alibaba Group Holding Ltd (BABA)vsRush Street Interactive Inc (RSI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 81738% more annual revenue ($1.02T vs $1.24B). BABA leads profitability with a 8.9% profit margin vs 3.0%. BABA trades at a lower P/E of 23.0x. RSI earns a higher WallStSmart Score of 56/100 (C).

BABA

Buy

50

out of 100

Grade: C-

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

RSI

Buy

56

out of 100

Grade: C

Growth: 10.0Profit: 7.0Value: 5.7Quality: 6.8
Piotroski: 4/9Altman Z: 4.29
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
RSIUndervalued (+50.5%)

Margin of Safety

+50.5%

Fair Value

$34.55

Current Price

$28.10

$6.45 discount

UndervaluedFair: $34.55Overvalued

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

RSI4 strengths · Avg: 10.0/10
Return on EquityProfitability
34.6%10/10

Every $100 of equity generates 35 in profit

Revenue GrowthGrowth
41.1%10/10

Revenue surging 41.1% year-over-year

EPS GrowthGrowth
67.2%10/10

Earnings expanding 67.2% YoY

Altman Z-ScoreHealth
4.2910/10

Safe zone — low bankruptcy risk

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

RSI3 concerns · Avg: 3.0/10
Price/BookValuation
19.1x4/10

Trading at 19.1x book value

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

P/E RatioValuation
82.3x2/10

Premium valuation, high expectations priced in

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 : RSI

The strongest argument for RSI centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 41.1% demonstrates continued momentum.

Bear Case : BABA

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

Bear Case : RSI

The primary concerns for RSI are Price/Book, Profit Margin, P/E Ratio. A P/E of 82.3x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BABA profiles as a value stock while RSI is a hypergrowth play — different risk/reward profiles.

RSI carries more volatility with a beta of 1.46 — expect wider price swings.

RSI is growing revenue faster at 41.1% — sustainability is the question.

RSI generates stronger free cash flow (69M), providing more financial flexibility.

Bottom Line

RSI scores higher overall (56/100 vs 50/100) and 41.1% revenue growth. 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.

Rush Street Interactive Inc

CONSUMER CYCLICAL · GAMBLING · USA

Rush Street Interactive, Inc. is an online casino and sports betting company in the United States and Latin America. The company is headquartered in Chicago, Illinois.

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