Alibaba Group Holding Ltd (BABA)vsLennar Corporation (LEN)
BABA
Alibaba Group Holding Ltd
$128.99
+1.33%
CONSUMER CYCLICAL · Cap: $293.02B
LEN
Lennar Corporation
$87.02
+2.14%
CONSUMER CYCLICAL · Cap: $19.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 3027% more annual revenue ($1.02T vs $32.74B). BABA leads profitability with a 10.1% profit margin vs 4.9%. BABA appears more attractively valued with a PEG of 0.48. BABA earns a higher WallStSmart Score of 64/100 (C+).
BABA
Buy64
out of 100
Grade: C+
LEN
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.5%
Fair Value
$375.80
Current Price
$128.99
$246.81 discount
Margin of Safety
+12.5%
Fair Value
$138.29
Current Price
$87.02
$51.27 discount
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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
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 7.5% — below average capital efficiency
4.9% margin — thin
Weak financial health signals
Expensive relative to growth rate
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 : LEN
The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : LEN
The primary concerns for LEN are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LEN carries more volatility with a beta of 1.39 — expect wider price swings.
BABA is growing revenue faster at 2.9% — sustainability is the question.
LEN generates stronger free cash flow (-303M), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BABA scores higher overall (64/100 vs 48/100). Both earn "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.
Lennar Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Lennar Corporation is a home construction and real estate company based in Fontainebleau, Florida.
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