Alibaba Group Holding Ltd (BABA)vsSonic Automotive Inc (SAH)
BABA
Alibaba Group Holding Ltd
$116.31
+0.48%
CONSUMER CYCLICAL · Cap: $281.47B
SAH
Sonic Automotive Inc
$65.34
-0.88%
CONSUMER CYCLICAL · Cap: $2.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 6656% more annual revenue ($1.04T vs $15.47B). BABA leads profitability with a 7.0% profit margin vs 1.4%. BABA appears more attractively valued with a PEG of 0.53. SAH earns a higher WallStSmart Score of 59/100 (C).
BABA
Buy55
out of 100
Grade: C-
SAH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.1%
Fair Value
$363.49
Current Price
$116.31
$247.18 discount
Margin of Safety
-23.4%
Fair Value
$49.30
Current Price
$65.34
$16.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on Altman Z-Score, PEG Ratio, P/E Ratio. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.56 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
SAH carries more volatility with a beta of 0.86 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
SAH generates stronger free cash flow (-218M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAH scores higher overall (59/100 vs 55/100). BABA offers better value entry with a 58.1% 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.
Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
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