WallStSmart

AutoNation Inc (AN)vsAlibaba Group Holding Ltd (BABA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 3623% more annual revenue ($1.02T vs $27.49B). BABA leads profitability with a 10.1% profit margin vs 2.5%. BABA appears more attractively valued with a PEG of 0.43. AN earns a higher WallStSmart Score of 66/100 (B-).

AN

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.83

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 8.7Quality: 6.5
Piotroski: 2/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

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

AN5 strengths · Avg: 8.8/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

BABA5 strengths · Avg: 9.4/10
Market CapQuality
$310.62B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.4310/10

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

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

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 : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.43 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.

Bear Case : BABA

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

Key Dynamics to Monitor

AN carries more volatility with a beta of 0.79 — expect wider price swings.

BABA is growing revenue faster at 2.9% — sustainability is the question.

AN generates stronger free cash flow (-34M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AN scores higher overall (66/100 vs 64/100). BABA offers better value entry with a 60.2% margin of safety. Both earn "Strong 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.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

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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