Alibaba Group Holding Ltd (BABA)vsYum! Brands Inc (YUM)
BABA
Alibaba Group Holding Ltd
$116.31
+0.48%
CONSUMER CYCLICAL · Cap: $281.47B
YUM
Yum! Brands Inc
$139.71
+0.27%
CONSUMER CYCLICAL · Cap: $37.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 11881% more annual revenue ($1.04T vs $8.72B). YUM leads profitability with a 25.4% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.53. YUM earns a higher WallStSmart Score of 65/100 (C+).
BABA
Buy55
out of 100
Grade: C-
YUM
Buy65
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
-78.0%
Fair Value
$89.36
Current Price
$139.71
$50.35 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
Strong operational efficiency at 32.8%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
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
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
BABA profiles as a value stock while YUM is a mature play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.55 — expect wider price swings.
YUM is growing revenue faster at 12.2% — sustainability is the question.
YUM generates stronger free cash flow (407M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 55/100), backed by strong 25.4% margins and 12.2% revenue growth. 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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