Alibaba Group Holding Ltd (BABA)vsLululemon Athletica Inc. (LULU)
BABA
Alibaba Group Holding Ltd
$100.96
+0.72%
CONSUMER CYCLICAL · Cap: $249.37B
LULU
Lululemon Athletica Inc.
$105.22
+0.60%
CONSUMER CYCLICAL · Cap: $11.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 9319% more annual revenue ($1.04T vs $11.09B). LULU leads profitability with a 12.8% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.46. LULU earns a higher WallStSmart Score of 60/100 (C).
BABA
Buy55
out of 100
Grade: C-
LULU
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+65.0%
Fair Value
$435.28
Current Price
$100.96
$334.32 discount
Margin of Safety
+70.2%
Fair Value
$589.81
Current Price
$105.22
$484.59 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
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Reasonable price relative to book value
Areas to Watch
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Earnings declined 79.4%
Weak financial health signals
Revenue declined 4.3%
Earnings declined 5.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are Return on Equity, Profit Margin, Piotroski F-Score.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
BABA profiles as a value stock while LULU is a declining play — different risk/reward profiles.
LULU carries more volatility with a beta of 0.92 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
LULU generates stronger free cash flow (225M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (60/100 vs 55/100). BABA offers better value entry with a 65.0% margin of safety. Both earn "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.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?