WallStSmart

Alibaba Group Holding Ltd (BABA)vsCarvana Co (CVNA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 4903% more annual revenue ($1.02T vs $20.32B). BABA leads profitability with a 8.9% profit margin vs 6.9%. BABA trades at a lower P/E of 24.0x. CVNA earns a higher WallStSmart Score of 58/100 (C).

BABA

Buy

50

out of 100

Grade: C-

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

CVNA

Buy

58

out of 100

Grade: C

Growth: 9.3Profit: 7.0Value: 3.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+73.0%)

Margin of Safety

+73.0%

Fair Value

$563.92

Current Price

$136.42

$427.50 discount

UndervaluedFair: $563.92Overvalued
CVNASignificantly Overvalued (-63.3%)

Margin of Safety

-63.3%

Fair Value

$222.98

Current Price

$416.79

$193.81 premium

UndervaluedFair: $222.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA3 strengths · Avg: 8.7/10
Market CapQuality
$336.63B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

CVNA5 strengths · Avg: 9.6/10
Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

Revenue GrowthGrowth
58.0%10/10

Revenue surging 58.0% year-over-year

EPS GrowthGrowth
947.0%10/10

Earnings expanding 947.0% YoY

Market CapQuality
$91.99B9/10

Large-cap with strong market position

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Areas to Watch

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

CVNA3 concerns · Avg: 3.0/10
Price/BookValuation
17.2x4/10

Trading at 17.2x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

P/E RatioValuation
49.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 58.0% demonstrates continued momentum.

Bear Case : BABA

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

Bear Case : CVNA

The primary concerns for CVNA are Price/Book, Profit Margin, P/E Ratio. A P/E of 49.3x leaves little room for execution misses.

Key Dynamics to Monitor

BABA profiles as a value stock while CVNA is a hypergrowth play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.61 — expect wider price swings.

CVNA is growing revenue faster at 58.0% — sustainability is the question.

CVNA generates stronger free cash flow (379M), providing more financial flexibility.

Bottom Line

CVNA scores higher overall (58/100 vs 50/100) and 58.0% revenue growth. BABA offers better value entry with a 73.0% 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.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

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