Baidu Inc (BIDU)vsAlphabet Inc Class A (GOOGL)
BIDU
Baidu Inc
$121.87
+0.98%
COMMUNICATION SERVICES · Cap: $42.46B
GOOGL
Alphabet Inc Class A
$307.69
-0.18%
COMMUNICATION SERVICES · Cap: $3.76T
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class A generates 212% more annual revenue ($402.84B vs $129.08B). GOOGL leads profitability with a 32.8% profit margin vs 4.3%. BIDU appears more attractively valued with a PEG of 0.71. GOOGL earns a higher WallStSmart Score of 70/100 (B).
BIDU
Hold47
out of 100
Grade: D+
GOOGL
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1147.8%
Fair Value
$11.63
Current Price
$121.87
$110.24 premium
Margin of Safety
+39.2%
Fair Value
$506.38
Current Price
$307.69
$198.69 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Generating 2.6B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 31.6%
Generating 24.6B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
ROE of 1.9% — below average capital efficiency
4.3% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Moderate valuation
Trading at 9.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : BIDU
The strongest argument for BIDU centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.71 suggests the stock is reasonably priced for its growth.
Bull Case : GOOGL
The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.
Bear Case : BIDU
The primary concerns for BIDU are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 71.2x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.
Bear Case : GOOGL
The primary concerns for GOOGL are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
BIDU profiles as a value stock while GOOGL is a growth play — different risk/reward profiles.
GOOGL carries more volatility with a beta of 1.11 — expect wider price swings.
GOOGL is growing revenue faster at 18.0% — sustainability is the question.
GOOGL generates stronger free cash flow (24.6B), providing more financial flexibility.
Bottom Line
GOOGL scores higher overall (70/100 vs 47/100), backed by strong 32.8% margins and 18.0% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Baidu Inc
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China
Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, China.
Alphabet Inc Class A
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
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