Alibaba Group Holding Ltd (BABA)vsUlta Beauty Inc (ULTA)
BABA
Alibaba Group Holding Ltd
$109.30
+0.68%
CONSUMER CYCLICAL · Cap: $281.47B
ULTA
Ulta Beauty Inc
$546.78
+2.08%
CONSUMER CYCLICAL · Cap: $23.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 7966% more annual revenue ($1.04T vs $12.96B). ULTA leads profitability with a 9.3% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.52. ULTA earns a higher WallStSmart Score of 61/100 (C+).
BABA
Buy55
out of 100
Grade: C-
ULTA
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.3%
Fair Value
$365.09
Current Price
$109.30
$255.79 discount
Margin of Safety
-20.8%
Fair Value
$565.46
Current Price
$546.78
$18.68 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
Every $100 of equity generates 46 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Trading at 8.6x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.
Bull Case : ULTA
The strongest argument for ULTA centers on Return on Equity, Altman Z-Score.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
ULTA carries more volatility with a beta of 0.85 — expect wider price swings.
ULTA is growing revenue faster at 8.9% — sustainability is the question.
ULTA generates stronger free cash flow (38M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ULTA scores higher overall (61/100 vs 55/100). BABA offers better value entry with a 58.3% 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.
Ulta Beauty Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.
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