WallStSmart

Alibaba Group Holding Ltd (BABA)vsBrinker International Inc (EAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 17894% more annual revenue ($1.04T vs $5.81B). EAT leads profitability with a 8.4% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.53. EAT earns a higher WallStSmart Score of 61/100 (C+).

BABA

Buy

55

out of 100

Grade: C-

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

EAT

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 5.0Quality: 5.5
Piotroski: 6/9Altman Z: 3.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.1%)

Margin of Safety

+58.1%

Fair Value

$363.49

Current Price

$115.75

$247.74 discount

UndervaluedFair: $363.49Overvalued

Intrinsic value data unavailable for EAT.

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
0.538/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

EAT3 strengths · Avg: 9.3/10
Return on EquityProfitability
114.0%10/10

Every $100 of equity generates 114 in profit

Altman Z-ScoreHealth
3.0810/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
29.4%8/10

Earnings expanding 29.4% 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

EAT3 concerns · Avg: 3.0/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

Price/BookValuation
19.1x4/10

Trading at 19.1x book value

Debt/EquityHealth
3.961/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bull Case : EAT

The strongest argument for EAT centers on Return on Equity, Altman Z-Score, EPS Growth.

Bear Case : BABA

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

Bear Case : EAT

The primary concerns for EAT are PEG Ratio, Price/Book, Debt/Equity. Debt-to-equity of 3.96 is elevated, increasing financial risk.

Key Dynamics to Monitor

EAT carries more volatility with a beta of 1.26 — expect wider price swings.

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

EAT generates stronger free cash flow (159M), providing more financial flexibility.

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

Bottom Line

EAT scores higher overall (61/100 vs 55/100). BABA offers better value entry with a 58.1% 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.

Brinker International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.

Visit Website →

Want to dig deeper into these stocks?