Alibaba Group Holding Ltd (BABA)vsAlphabet Inc Class A (GOOGL)
BABA
Alibaba Group Holding Ltd
$108.76
-0.89%
CONSUMER CYCLICAL · Cap: $281.47B
GOOGL
Alphabet Inc Class A
$342.75
-0.34%
COMMUNICATION SERVICES · Cap: $4.13T
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 134% more annual revenue ($1.04T vs $445.87B). GOOGL leads profitability with a 54.8% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.53. GOOGL earns a higher WallStSmart Score of 76/100 (B+).
BABA
Buy55
out of 100
Grade: C-
GOOGL
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.1%
Fair Value
$363.49
Current Price
$108.76
$254.73 discount
Margin of Safety
+48.2%
Fair Value
$661.23
Current Price
$342.75
$318.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 38 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 34.0%
Earnings expanding 294.0% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : GOOGL
The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 54.8% and operating margin at 34.0%. Revenue growth of 24.2% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : GOOGL
The primary concerns for GOOGL are Free Cash Flow.
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 1.23 — expect wider price swings.
GOOGL is growing revenue faster at 24.2% — sustainability is the question.
GOOGL generates stronger free cash flow (-5.9B), providing more financial flexibility.
Bottom Line
GOOGL scores higher overall (76/100 vs 55/100), backed by strong 54.8% margins and 24.2% revenue growth. BABA offers better value entry with a 58.1% 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.
Visit Website →Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?