Alibaba Group Holding Ltd (BABA)vsDarden Restaurants Inc (DRI)
BABA
Alibaba Group Holding Ltd
$100.36
-1.12%
CONSUMER CYCLICAL · Cap: $249.37B
DRI
Darden Restaurants Inc
$219.39
-1.54%
CONSUMER CYCLICAL · Cap: $24.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 7718% more annual revenue ($1.04T vs $13.37B). DRI leads profitability with a 8.8% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.46. BABA earns a higher WallStSmart Score of 55/100 (C-).
BABA
Buy55
out of 100
Grade: C-
DRI
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+65.0%
Fair Value
$435.28
Current Price
$100.36
$334.92 discount
Margin of Safety
-81.9%
Fair Value
$117.01
Current Price
$219.39
$102.38 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 57 in profit
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 12.0x book value
Earnings declined 6.7%
Distress zone — elevated risk
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 : DRI
The strongest argument for DRI centers on Return on Equity.
Bear Case : BABA
The primary concerns for BABA are Return on Equity, Profit Margin, Piotroski F-Score.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.20 is elevated, increasing financial risk.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.62 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
DRI generates stronger free cash flow (101M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BABA scores higher overall (55/100 vs 51/100). 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.
Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
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