WallStSmart

Airbnb Inc (ABNB)vsAlibaba Group Holding Ltd (BABA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 7994% more annual revenue ($1.02T vs $12.65B). ABNB leads profitability with a 19.9% profit margin vs 10.1%. BABA appears more attractively valued with a PEG of 0.39. BABA earns a higher WallStSmart Score of 64/100 (C+).

ABNB

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 6.7Quality: 5.0
Piotroski: 3/9Altman Z: 1.20

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 9.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABNBUndervalued (+42.8%)

Margin of Safety

+42.8%

Fair Value

$233.63

Current Price

$133.54

$100.09 discount

UndervaluedFair: $233.63Overvalued
BABAUndervalued (+60.2%)

Margin of Safety

+60.2%

Fair Value

$382.49

Current Price

$121.06

$261.43 discount

UndervaluedFair: $382.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABNB4 strengths · Avg: 8.8/10
Return on EquityProfitability
33.0%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$79.74B9/10

Large-cap with strong market position

Revenue GrowthGrowth
17.9%8/10

17.9% revenue growth

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$270.36B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3910/10

Growing faster than its price suggests

EPS GrowthGrowth
104.1%10/10

Earnings expanding 104.1% YoY

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

ABNB4 concerns · Avg: 3.5/10
P/E RatioValuation
33.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

BABA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-18.10B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ABNB

The strongest argument for ABNB centers on Return on Equity, Market Cap, Revenue Growth. Profitability is solid with margins at 19.9% and operating margin at 3.2%. Revenue growth of 17.9% demonstrates continued momentum.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bear Case : ABNB

The primary concerns for ABNB are P/E Ratio, Price/Book, Operating Margin.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.

Key Dynamics to Monitor

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

ABNB carries more volatility with a beta of 1.21 — expect wider price swings.

ABNB is growing revenue faster at 17.9% — sustainability is the question.

ABNB generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

BABA scores higher overall (64/100 vs 59/100). ABNB offers better value entry with a 42.8% 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.

Airbnb Inc

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Airbnb, Inc. is an American company that operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities, based in San Francisco, California.

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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