WallStSmart

Alibaba Group Holding Ltd (BABA)vsZumiez Inc (ZUMZ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 109338% more annual revenue ($1.02T vs $929.06M). BABA leads profitability with a 8.9% profit margin vs 1.4%. BABA appears more attractively valued with a PEG of 0.80. ZUMZ earns a higher WallStSmart Score of 61/100 (C+).

BABA

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

ZUMZ

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 4.5Value: 7.3Quality: 5.0
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$562.19

Current Price

$131.88

$430.31 discount

UndervaluedFair: $562.19Overvalued
ZUMZUndervalued (+45.6%)

Margin of Safety

+45.6%

Fair Value

$44.43

Current Price

$24.57

$19.86 discount

UndervaluedFair: $44.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA3 strengths · Avg: 8.7/10
Market CapQuality
$321.85B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

ZUMZ3 strengths · Avg: 8.7/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.968/10

Growing faster than its price suggests

EPS GrowthGrowth
49.1%8/10

Earnings expanding 49.1% YoY

Areas to Watch

BABA3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

EPS GrowthGrowth
-70.9%2/10

Earnings declined 70.9%

Free Cash FlowQuality
$-32.37B2/10

Negative free cash flow — burning cash

ZUMZ4 concerns · Avg: 3.5/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Market CapQuality
$425.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull 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 : ZUMZ

The strongest argument for ZUMZ centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.96 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 : ZUMZ

The primary concerns for ZUMZ are P/E Ratio, Revenue Growth, Market Cap. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

ZUMZ carries more volatility with a beta of 0.95 — expect wider price swings.

ZUMZ is growing revenue faster at 4.4% — sustainability is the question.

ZUMZ generates stronger free cash flow (55M), providing more financial flexibility.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ZUMZ scores higher overall (61/100 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.

Zumiez Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Zumiez Inc., is a specialty retailer of clothing, footwear, accessories and durable goods for young men and women. The company is headquartered in Lynnwood, Washington.

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