WallStSmart

Alibaba Group Holding Ltd (BABA)vsLennar Corporation (LEN-B)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 3092% more annual revenue ($1.04T vs $32.74B). BABA leads profitability with a 7.0% profit margin vs 4.9%. BABA appears more attractively valued with a PEG of 0.52. BABA earns a higher WallStSmart Score of 55/100 (C-).

BABA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 8.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

LEN-B

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 3.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$365.09

Current Price

$109.30

$255.79 discount

UndervaluedFair: $365.09Overvalued
LEN-BUndervalued (+85.4%)

Margin of Safety

+85.4%

Fair Value

$766.39

Current Price

$78.27

$688.12 discount

UndervaluedFair: $766.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA4 strengths · Avg: 8.8/10
Market CapQuality
$281.47B10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

LEN-B4 strengths · Avg: 9.3/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Areas to Watch

BABA4 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

LEN-B4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
11.112/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bull Case : LEN-B

The strongest argument for LEN-B centers on Price/Book, Altman Z-Score, Debt/Equity.

Bear Case : BABA

The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.

Bear Case : LEN-B

The primary concerns for LEN-B are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

LEN-B carries more volatility with a beta of 1.40 — expect wider price swings.

BABA is growing revenue faster at 8.6% — sustainability is the question.

LEN-B 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 (55/100 vs 44/100). LEN-B offers better value entry with a 85.4% margin of safety. 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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