Alibaba Group Holding Ltd (BABA)vsDraftKings Inc (DKNG)
BABA
Alibaba Group Holding Ltd
$121.06
-3.88%
CONSUMER CYCLICAL · Cap: $270.36B
DKNG
DraftKings Inc
$24.93
-1.73%
CONSUMER CYCLICAL · Cap: $14.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 16170% more annual revenue ($1.02T vs $6.29B). BABA leads profitability with a 10.1% profit margin vs 0.9%. DKNG appears more attractively valued with a PEG of 0.11. BABA earns a higher WallStSmart Score of 64/100 (C+).
BABA
Buy64
out of 100
Grade: C+
DKNG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.2%
Fair Value
$382.49
Current Price
$121.06
$261.43 discount
Margin of Safety
+63.6%
Fair Value
$72.24
Current Price
$24.93
$47.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Earnings expanding 104.1% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 184.6% YoY
16.8% revenue growth
Areas to Watch
2.9% revenue growth
Operating margin of 1.0%
Weak financial health signals
Negative free cash flow — burning cash
0.9% margin — thin
Operating margin of 0.3%
Premium valuation, high expectations priced in
Trading at 20.4x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : DKNG
The strongest argument for DKNG centers on PEG Ratio, EPS Growth, Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum. PEG of 0.11 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : DKNG
The primary concerns for DKNG are Profit Margin, Operating Margin, P/E Ratio. A P/E of 322.2x leaves little room for execution misses. Debt-to-equity of 2.22 is elevated, increasing financial risk.
Key Dynamics to Monitor
BABA profiles as a value stock while DKNG is a growth play — different risk/reward profiles.
DKNG carries more volatility with a beta of 1.65 — expect wider price swings.
DKNG is growing revenue faster at 16.8% — sustainability is the question.
DKNG generates stronger free cash flow (-56M), providing more financial flexibility.
Bottom Line
BABA scores higher overall (64/100 vs 56/100). DKNG offers better value entry with a 63.6% 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.
DraftKings Inc
CONSUMER CYCLICAL · GAMBLING · USA
DraftKings Inc. is a digital sports entertainment and games company in the United States. The company is headquartered in Boston, Massachusetts.
Visit Website →Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?