WallStSmart

Baidu Inc (BIDU)vsTIM Participacoes SA (TIMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baidu Inc generates 377% more annual revenue ($129.08B vs $27.04B). TIMB leads profitability with a 16.0% profit margin vs 4.3%. BIDU appears more attractively valued with a PEG of 0.72. TIMB earns a higher WallStSmart Score of 61/100 (C+).

BIDU

Hold

46

out of 100

Grade: D+

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

TIMB

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 7.3Quality: 4.8
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BIDU.

TIMBUndervalued (+49.9%)

Margin of Safety

+49.9%

Fair Value

$54.10

Current Price

$23.60

$30.50 discount

UndervaluedFair: $54.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BIDU2 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.728/10

Growing faster than its price suggests

TIMB3 strengths · Avg: 8.0/10
P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.3%8/10

Strong operational efficiency at 24.3%

Free Cash FlowQuality
$2.92B8/10

Generating 2.9B in free cash flow

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

TIMB4 concerns · Avg: 4.0/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Price/BookValuation
12.2x4/10

Trading at 12.2x book value

EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

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 : TIMB

The strongest argument for TIMB centers on P/E Ratio, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.0% and operating margin at 24.3%.

Bear Case : BIDU

The primary concerns for BIDU are Return on Equity, Profit Margin, Operating Margin. A P/E of 81.3x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.

Bear Case : TIMB

The primary concerns for TIMB are PEG Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

BIDU profiles as a value stock while TIMB is a mature play — different risk/reward profiles.

BIDU carries more volatility with a beta of 0.52 — expect wider price swings.

TIMB is growing revenue faster at 6.5% — sustainability is the question.

TIMB generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

TIMB scores higher overall (61/100 vs 46/100), backed by strong 16.0% margins. 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.

TIM Participacoes SA

COMMUNICATION SERVICES · TELECOM SERVICES · USA

TIM SA is a telecommunications company in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

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