Alibaba Group Holding Ltd (BABA)vsChoice Hotels International Inc (CHH)
BABA
Alibaba Group Holding Ltd
$100.96
+0.72%
CONSUMER CYCLICAL · Cap: $249.37B
CHH
Choice Hotels International Inc
$110.02
+0.76%
CONSUMER CYCLICAL · Cap: $4.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 103757% more annual revenue ($1.04T vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.46. CHH earns a higher WallStSmart Score of 60/100 (C+).
BABA
Buy55
out of 100
Grade: C-
CHH
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+65.0%
Fair Value
$435.28
Current Price
$100.96
$334.32 discount
Margin of Safety
-68.8%
Fair Value
$64.59
Current Price
$110.02
$45.43 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Conservative balance sheet, low leverage
Every $100 of equity generates 252 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 37.7%
Attractively priced relative to earnings
Areas to Watch
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Earnings declined 79.4%
Expensive relative to growth rate
Trading at 34.6x book value
Earnings declined 19.4%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bull Case : CHH
The strongest argument for CHH centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 32.6% and operating margin at 37.7%.
Bear Case : BABA
The primary concerns for BABA are Return on Equity, Profit Margin, Piotroski F-Score.
Bear Case : CHH
The primary concerns for CHH are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 14.82 is elevated, increasing financial risk.
Key Dynamics to Monitor
BABA profiles as a value stock while CHH is a mature play — different risk/reward profiles.
CHH carries more volatility with a beta of 0.71 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
CHH generates stronger free cash flow (64M), providing more financial flexibility.
Bottom Line
CHH scores higher overall (60/100 vs 55/100), backed by strong 32.6% margins. BABA offers better value entry with a 65.0% 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.
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.
Choice Hotels International Inc
CONSUMER CYCLICAL · LODGING · USA
Choice Hotels International, Inc. is a global hotel franchisor. The company is headquartered in Rockville, Maryland.
Visit Website →Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?