Alibaba Group Holding Ltd (BABA)vsGameStop Corp. (GME)
BABA
Alibaba Group Holding Ltd
$121.06
-3.88%
CONSUMER CYCLICAL · Cap: $270.36B
GME
GameStop Corp.
$21.80
-2.11%
CONSUMER CYCLICAL · Cap: $9.77B
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
+60.2%
Fair Value
$382.49
Current Price
$121.06
$261.43 discount
Margin of Safety
-58.6%
Fair Value
$15.26
Current Price
$21.80
$6.54 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
Earnings expanding 633.0% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
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 0.39 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 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 1.77 — 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 60.2% 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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