WallStSmart

Alibaba Group Holding Ltd (BABA)vsTrip.com Group Ltd ADR (TCOM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 1540% more annual revenue ($1.02T vs $62.41B). TCOM leads profitability with a 53.3% profit margin vs 10.1%. BABA appears more attractively valued with a PEG of 0.39. TCOM earns a higher WallStSmart Score of 81/100 (A-).

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 9.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

TCOM

Exceptional Buy

81

out of 100

Grade: A-

Growth: 9.3Profit: 8.0Value: 8.0Quality: 7.5
Piotroski: 5/9Altman Z: 2.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+60.2%)

Margin of Safety

+60.2%

Fair Value

$382.49

Current Price

$121.06

$261.43 discount

UndervaluedFair: $382.49Overvalued
TCOMUndervalued (+87.0%)

Margin of Safety

+87.0%

Fair Value

$362.17

Current Price

$47.69

$314.48 discount

UndervaluedFair: $362.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$270.36B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3910/10

Growing faster than its price suggests

EPS GrowthGrowth
104.1%10/10

Earnings expanding 104.1% YoY

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

TCOM6 strengths · Avg: 9.8/10
P/E RatioValuation
6.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
53.3%10/10

Keeps 53 of every $100 in revenue as profit

EPS GrowthGrowth
98.1%10/10

Earnings expanding 98.1% YoY

Free Cash FlowQuality
$13.58B10/10

Generating 13.6B in free cash flow

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Areas to Watch

BABA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-18.10B2/10

Negative free cash flow — burning cash

TCOM1 concerns · Avg: 4.0/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bull Case : TCOM

The strongest argument for TCOM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 53.3% and operating margin at 16.5%. Revenue growth of 20.8% demonstrates continued momentum.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.

Bear Case : TCOM

The primary concerns for TCOM are PEG Ratio.

Key Dynamics to Monitor

BABA profiles as a value stock while TCOM is a growth play — different risk/reward profiles.

BABA carries more volatility with a beta of 0.46 — expect wider price swings.

TCOM is growing revenue faster at 20.8% — sustainability is the question.

TCOM generates stronger free cash flow (13.6B), providing more financial flexibility.

Bottom Line

TCOM scores higher overall (81/100 vs 64/100), backed by strong 53.3% margins and 20.8% revenue growth. BABA offers better value entry with a 60.2% margin of safety. Both earn "Exceptional 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.

Trip.com Group Ltd ADR

CONSUMER CYCLICAL · TRAVEL SERVICES · China

Trip.com Group Limited is a travel service provider for accommodation booking, transportation ticketing, destination and package tours, corporate travel management and other travel-related services in China and internationally. The company is headquartered in Shanghai, the People's Republic of China.

Visit Website →

Want to dig deeper into these stocks?