Alibaba Group Holding Ltd (BABA)vsGameStop Corp. (GME)
BABA
Alibaba Group Holding Ltd
$127.28
+4.11%
CONSUMER CYCLICAL · Cap: $293.02B
GME
GameStop Corp.
$19.06
-12.25%
CONSUMER CYCLICAL · Cap: $9.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 27324% more annual revenue ($1.02T vs $3.73B). GME leads profitability with a 20.4% profit margin vs 10.1%. GME appears more attractively valued with a PEG of 0.31. GME earns a higher WallStSmart Score of 74/100 (B).
BABA
Buy64
out of 100
Grade: C+
GME
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.5%
Fair Value
$375.80
Current Price
$127.28
$248.52 discount
Margin of Safety
-58.0%
Fair Value
$15.32
Current Price
$19.06
$3.74 premium
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
Reasonable price relative to book value
Earnings expanding 633.0% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
2.9% revenue growth
Operating margin of 1.0%
Weak financial health signals
Negative free cash flow — burning cash
ROE of 7.7% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.48 suggests the stock is reasonably priced for its growth.
Bull Case : GME
The strongest argument for GME centers on PEG Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 20.4% and operating margin at 16.6%. Revenue growth of 14.1% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : GME
The primary concerns for GME are Return on Equity.
Key Dynamics to Monitor
BABA profiles as a value stock while GME is a mature play — different risk/reward profiles.
GME carries more volatility with a beta of 1.76 — expect wider price swings.
GME is growing revenue faster at 14.1% — sustainability is the question.
GME generates stronger free cash flow (333M), providing more financial flexibility.
Bottom Line
GME scores higher overall (74/100 vs 64/100), backed by strong 20.4% margins and 14.1% revenue growth. BABA offers better value entry with a 59.5% 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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