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 35288% more annual revenue ($1.02T vs $2.89B). BABA leads profitability with a 10.1% profit margin vs -0.3%. BABA appears more attractively valued with a PEG of 0.39. BABA earns a higher WallStSmart Score of 64/100 (C+).

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 9.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

DBI

Hold

50

out of 100

Grade: D+

Growth: 5.3Profit: 3.5Value: 6.3Quality: 4.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+60.2%)

Margin of Safety

+60.2%

Fair Value

$382.49

Current Price

$121.06

$261.43 discount

UndervaluedFair: $382.49Overvalued
DBIUndervalued (+77.0%)

Margin of Safety

+77.0%

Fair Value

$28.85

Current Price

$8.44

$20.41 discount

UndervaluedFair: $28.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$270.36B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3910/10

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

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

DBI2 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
45.8%8/10

Earnings expanding 45.8% YoY

Areas to Watch

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

DBI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$428.33M3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-24.69M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 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 Revenue Growth, Operating Margin, Piotroski F-Score.

Bear Case : DBI

The primary concerns for DBI are PEG Ratio, Revenue Growth, Market Cap. Debt-to-equity of 4.37 is elevated, increasing financial risk.

Key Dynamics to Monitor

BABA profiles as a value stock while DBI is a turnaround play — different risk/reward profiles.

DBI carries more volatility with a beta of 1.21 — expect wider price swings.

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

DBI generates stronger free cash flow (-25M), providing more financial flexibility.

Bottom Line

BABA scores higher overall (64/100 vs 50/100). DBI offers better value entry with a 77.0% margin of safety. Both earn "Buy" and "Hold" 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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