WallStSmart

Apple Inc (AAPL)vsAlibaba Group Holding Ltd (BABA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 133% more annual revenue ($1.02T vs $435.62B). AAPL leads profitability with a 27.0% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 1.56. AAPL earns a higher WallStSmart Score of 65/100 (C+).

AAPL

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.5Value: 8.7Quality: 7.0
Piotroski: 7/9Altman Z: 2.42

BABA

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAPLUndervalued (+11.8%)

Margin of Safety

+11.8%

Fair Value

$285.39

Current Price

$252.62

$32.77 discount

UndervaluedFair: $285.39Overvalued
BABASignificantly Overvalued (-298.4%)

Margin of Safety

-298.4%

Fair Value

$38.22

Current Price

$129.87

$91.65 premium

UndervaluedFair: $38.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAPL5 strengths · Avg: 9.4/10
Market CapQuality
$3.70T10/10

Mega-cap, among the largest globally

Operating MarginProfitability
35.4%10/10

Strong operational efficiency at 35.4%

Free Cash FlowQuality
$51.55B10/10

Generating 51.6B in free cash flow

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

BABA3 strengths · Avg: 9.3/10
Market CapQuality
$299.57B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$36.03B10/10

Generating 36.0B in free cash flow

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

AAPL4 concerns · Avg: 3.5/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

Debt/EquityHealth
1.033/10

Elevated debt levels

BABA3 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

EPS GrowthGrowth
-70.9%2/10

Earnings declined 70.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AAPL

The strongest argument for AAPL centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 27.0% and operating margin at 35.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.

Bear Case : AAPL

The primary concerns for AAPL are PEG Ratio, P/E Ratio, Return on Equity.

Bear Case : BABA

The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

AAPL profiles as a growth stock while BABA is a value play — different risk/reward profiles.

AAPL carries more volatility with a beta of 1.12 — expect wider price swings.

AAPL is growing revenue faster at 15.7% — sustainability is the question.

AAPL generates stronger free cash flow (51.6B), providing more financial flexibility.

Bottom Line

AAPL scores higher overall (65/100 vs 49/100), backed by strong 27.0% margins and 15.7% revenue growth. 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.

Apple Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. Apple is the world's largest technology company by revenue (totalling $274.5 billion in 2020) and, since January 2021, the world's most valuable company. As of 2021, Apple is the world's fourth-largest PC vendor by unit sales, and fourth-largest smartphone manufacturer. It is one of the Big Five American information technology companies, along with Amazon, Google, Microsoft, and Facebook.

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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.

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