Alibaba Group Holding Ltd (BABA)vsSonic Automotive Inc (SAH)
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
SAH
Sonic Automotive Inc
$73.31
+1.27%
CONSUMER CYCLICAL · Cap: $2.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 6610% more annual revenue ($1.02T vs $15.15B). BABA leads profitability with a 8.9% profit margin vs 0.8%. SAH appears more attractively valued with a PEG of 0.39. SAH earns a higher WallStSmart Score of 51/100 (C-).
BABA
Buy50
out of 100
Grade: C-
SAH
Buy51
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
+67.2%
Fair Value
$185.74
Current Price
$73.31
$112.43 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
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
0.8% margin — thin
Operating margin of 3.3%
Weak financial health signals
Revenue declined 0.6%
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 : SAH
The strongest argument for SAH centers on PEG Ratio, Price/Book. PEG of 0.39 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 : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, Piotroski F-Score. Thin 0.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
SAH carries more volatility with a beta of 0.83 — expect wider price swings.
BABA is growing revenue faster at 1.7% — sustainability is the question.
SAH generates stronger free cash flow (30M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAH scores higher overall (51/100 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.
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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