WallStSmart

Baidu Inc (BIDU)vsTelefonica SA ADR (TEF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baidu Inc generates 210% more annual revenue ($129.08B vs $41.62B). BIDU leads profitability with a 4.3% profit margin vs -5.0%. TEF appears more attractively valued with a PEG of 0.35. TEF earns a higher WallStSmart Score of 55/100 (C-).

BIDU

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 4.0Value: 5.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.40

TEF

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 3.5Value: 8.3Quality: 4.3
Piotroski: 6/9Altman Z: 0.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BIDU.

TEFUndervalued (+78.4%)

Margin of Safety

+78.4%

Fair Value

$17.61

Current Price

$3.81

$13.80 discount

UndervaluedFair: $17.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BIDU2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

PEG RatioValuation
0.728/10

Growing faster than its price suggests

TEF3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
2660.0%10/10

Earnings expanding 2660.0% YoY

Areas to Watch

BIDU4 concerns · Avg: 3.0/10
Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

TEF4 concerns · Avg: 1.8/10
Return on EquityProfitability
-2.3%2/10

ROE of -2.3% — below average capital efficiency

Revenue GrowthGrowth
-6.6%2/10

Revenue declined 6.6%

Altman Z-ScoreHealth
0.982/10

Distress zone — elevated risk

Profit MarginProfitability
-5.0%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : BIDU

The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.

Bull Case : TEF

The strongest argument for TEF centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.35 suggests the stock is reasonably priced for its growth.

Bear Case : BIDU

The primary concerns for BIDU are Return on Equity, Profit Margin, Operating Margin. A P/E of 70.3x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.

Bear Case : TEF

The primary concerns for TEF are Return on Equity, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

BIDU profiles as a value stock while TEF is a turnaround play — different risk/reward profiles.

BIDU carries more volatility with a beta of 0.43 — expect wider price swings.

BIDU is growing revenue faster at -4.1% — sustainability is the question.

TEF generates stronger free cash flow (864M), providing more financial flexibility.

Bottom Line

TEF scores higher overall (55/100 vs 46/100). Both earn "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.

Telefonica SA ADR

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Telefnica, SA, provides telecommunications services in Europe and Latin America. The company is headquartered in Madrid, Spain.

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