Alibaba Group Holding Ltd (BABA)vsGameStop Corp. (GME)
BABA
Alibaba Group Holding Ltd
$98.04
-1.51%
CONSUMER CYCLICAL · Cap: $249.37B
GME
GameStop Corp.
$24.23
+0.96%
CONSUMER CYCLICAL · Cap: $11.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 29329% more annual revenue ($1.04T vs $3.55B). GME leads profitability with a 25.2% profit margin vs 7.0%. GME appears more attractively valued with a PEG of 0.31. GME earns a higher WallStSmart Score of 74/100 (B).
BABA
Buy55
out of 100
Grade: C-
GME
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+65.0%
Fair Value
$435.28
Current Price
$98.04
$337.24 discount
Margin of Safety
-85.1%
Fair Value
$13.08
Current Price
$24.23
$11.15 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
Growing faster than its price suggests
Earnings expanding 64.5% YoY
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 20.0%
Areas to Watch
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Earnings declined 79.4%
Revenue declined 18.7%
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 : GME
The strongest argument for GME centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 25.2% and operating margin at 20.0%. PEG of 0.31 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are Return on Equity, Profit Margin, Piotroski F-Score.
Bear Case : GME
The primary concerns for GME are Revenue Growth.
Key Dynamics to Monitor
BABA profiles as a value stock while GME is a declining play — different risk/reward profiles.
GME carries more volatility with a beta of 1.62 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
GME generates stronger free cash flow (61M), providing more financial flexibility.
Bottom Line
GME scores higher overall (74/100 vs 55/100), backed by strong 25.2% margins. BABA offers better value entry with a 65.0% margin of safety. Both earn "Strong 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.
GameStop Corp.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
GameStop Corp. The company is headquartered in Grapevine, Texas.
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