WallStSmart

Allison Transmission Holdings Inc (ALSN)vsAlibaba Group Holding Ltd (BABA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 33679% more annual revenue ($1.02T vs $3.01B). ALSN leads profitability with a 20.7% profit margin vs 8.9%. ALSN appears more attractively valued with a PEG of 0.78. ALSN earns a higher WallStSmart Score of 62/100 (C+).

ALSN

Buy

62

out of 100

Grade: C+

Growth: 2.7Profit: 8.5Value: 7.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.56

BABA

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ALSN.

BABAUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$562.19

Current Price

$131.88

$430.31 discount

UndervaluedFair: $562.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALSN5 strengths · Avg: 8.6/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.788/10

Growing faster than its price suggests

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

BABA3 strengths · Avg: 8.7/10
Market CapQuality
$321.85B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

ALSN4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.564/10

Distress zone — elevated risk

Debt/EquityHealth
1.303/10

Elevated debt levels

Revenue GrowthGrowth
-7.4%2/10

Revenue declined 7.4%

EPS GrowthGrowth
-41.1%2/10

Earnings declined 41.1%

BABA3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

EPS GrowthGrowth
-70.9%2/10

Earnings declined 70.9%

Free Cash FlowQuality
$-32.37B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ALSN

The strongest argument for ALSN centers on Return on Equity, Profit Margin, PEG Ratio. Profitability is solid with margins at 20.7% and operating margin at 21.8%. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : ALSN

The primary concerns for ALSN are Altman Z-Score, Debt/Equity, Revenue Growth.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ALSN profiles as a declining stock while BABA is a value play — different risk/reward profiles.

ALSN carries more volatility with a beta of 0.96 — expect wider price swings.

BABA is growing revenue faster at 1.7% — sustainability is the question.

ALSN generates stronger free cash flow (163M), providing more financial flexibility.

Bottom Line

ALSN scores higher overall (62/100 vs 50/100), backed by strong 20.7% margins. BABA offers better value entry with a 72.9% 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.

Allison Transmission Holdings Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.

Visit Website →

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.

Want to dig deeper into these stocks?