Alibaba Group Holding Ltd (BABA)vsJohnson & Johnson (JNJ)
BABA
Alibaba Group Holding Ltd
$129.87
+3.50%
CONSUMER CYCLICAL · Cap: $299.57B
JNJ
Johnson & Johnson
$239.93
+1.98%
HEALTHCARE · Cap: $567.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 979% more annual revenue ($1.02T vs $94.19B). JNJ leads profitability with a 28.5% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 1.56. JNJ earns a higher WallStSmart Score of 71/100 (B).
BABA
Hold49
out of 100
Grade: D+
JNJ
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-298.4%
Fair Value
$38.22
Current Price
$129.87
$91.65 premium
Margin of Safety
+54.5%
Fair Value
$516.67
Current Price
$239.93
$276.74 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 36.0B in free cash flow
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 24.0%
Earnings expanding 48.6% YoY
Generating 5.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
1.7% revenue growth
Earnings declined 70.9%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 28.5% and operating margin at 24.0%.
Bear Case : BABA
The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : JNJ
The primary concerns for JNJ are PEG Ratio.
Key Dynamics to Monitor
BABA profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
BABA carries more volatility with a beta of 0.43 — expect wider price swings.
JNJ is growing revenue faster at 9.1% — sustainability is the question.
BABA generates stronger free cash flow (36.0B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (71/100 vs 49/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Hold" 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.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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