Alibaba Group Holding Ltd (BABA)vsAlphabet Inc Class A (GOOGL)
BABA
Alibaba Group Holding Ltd
$131.50
-0.29%
CONSUMER CYCLICAL · Cap: $321.85B
GOOGL
Alphabet Inc Class A
$385.69
-0.63%
COMMUNICATION SERVICES · Cap: $4.66T
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 152% more annual revenue ($1.02T vs $402.84B). GOOGL leads profitability with a 32.8% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 0.80. GOOGL earns a higher WallStSmart Score of 70/100 (B).
BABA
Buy50
out of 100
Grade: C-
GOOGL
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.8%
Fair Value
$560.44
Current Price
$131.50
$428.94 discount
Margin of Safety
+37.7%
Fair Value
$619.09
Current Price
$385.69
$233.40 discount
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
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 31.6%
Generating 19.0B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
Moderate valuation
Trading at 11.2x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bull Case : GOOGL
The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.
Bear Case : GOOGL
The primary concerns for GOOGL are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
BABA profiles as a value stock while GOOGL is a growth play — different risk/reward profiles.
GOOGL carries more volatility with a beta of 1.13 — expect wider price swings.
GOOGL is growing revenue faster at 18.0% — sustainability is the question.
GOOGL generates stronger free cash flow (19.0B), providing more financial flexibility.
Bottom Line
GOOGL scores higher overall (70/100 vs 50/100), backed by strong 32.8% margins and 18.0% revenue growth. BABA offers better value entry with a 72.8% 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.
Alphabet Inc Class A
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
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