Arcos Dorados Holdings Inc (ARCO)vsAlibaba Group Holding Ltd (BABA)
ARCO
Arcos Dorados Holdings Inc
$7.94
-0.87%
CONSUMER CYCLICAL · Cap: $1.70B
BABA
Alibaba Group Holding Ltd
$109.23
-0.06%
CONSUMER CYCLICAL · Cap: $281.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 20879% more annual revenue ($1.04T vs $4.98B). BABA leads profitability with a 7.0% profit margin vs 5.2%. BABA appears more attractively valued with a PEG of 0.52. ARCO earns a higher WallStSmart Score of 72/100 (B).
ARCO
Strong Buy72
out of 100
Grade: B
BABA
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.2%
Fair Value
$11.71
Current Price
$7.94
$3.77 discount
Margin of Safety
+58.3%
Fair Value
$365.09
Current Price
$109.23
$255.86 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 99.3% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Grey zone — moderate risk
Smaller company, higher risk/reward
5.2% margin — thin
Elevated debt levels
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 14.3% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : BABA
The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.
Bear Case : ARCO
The primary concerns for ARCO are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 2.65 is elevated, increasing financial risk.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
Key Dynamics to Monitor
BABA carries more volatility with a beta of 0.50 — expect wider price swings.
ARCO is growing revenue faster at 14.3% — sustainability is the question.
ARCO generates stronger free cash flow (56M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (72/100 vs 55/100) and 14.3% revenue growth. BABA offers better value entry with a 58.3% 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.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
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.
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