WallStSmart

Alibaba Group Holding Ltd (BABA)vsDesigner Brands Inc (DBI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 36021% more annual revenue ($1.04T vs $2.89B). BABA leads profitability with a 7.0% profit margin vs 0.6%. BABA appears more attractively valued with a PEG of 0.52. DBI earns a higher WallStSmart Score of 56/100 (C).

BABA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 8.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

DBI

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 4.5Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$365.09

Current Price

$109.30

$255.79 discount

UndervaluedFair: $365.09Overvalued
DBIUndervalued (+76.3%)

Margin of Safety

+76.3%

Fair Value

$28.01

Current Price

$5.88

$22.13 discount

UndervaluedFair: $28.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA4 strengths · Avg: 8.8/10
Market CapQuality
$281.47B10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

DBI2 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
47.6%8/10

Earnings expanding 47.6% YoY

Areas to Watch

BABA4 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

DBI4 concerns · Avg: 3.5/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.794/10

Distress zone — elevated risk

Market CapQuality
$300.61M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.6%3/10

0.6% margin — thin

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : DBI

The strongest argument for DBI centers on Price/Book, EPS Growth.

Bear Case : BABA

The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.

Bear Case : DBI

The primary concerns for DBI are PEG Ratio, Altman Z-Score, Market Cap. Debt-to-equity of 4.02 is elevated, increasing financial risk. Thin 0.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

DBI carries more volatility with a beta of 1.25 — expect wider price swings.

BABA is growing revenue faster at 8.6% — sustainability is the question.

DBI generates stronger free cash flow (58M), providing more financial flexibility.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DBI scores higher overall (56/100 vs 55/100). BABA offers better value entry with a 58.3% 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.

Designer Brands Inc

CONSUMER CYCLICAL · FOOTWEAR & ACCESSORIES · USA

Designer Brands Inc. designs, manufactures and retails women's, men's and children's footwear and accessories primarily in North America. The company is headquartered in Columbus, Ohio.

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