Alibaba Group Holding Ltd (BABA)vsLululemon Athletica Inc. (LULU)
BABA
Alibaba Group Holding Ltd
$109.30
+0.68%
CONSUMER CYCLICAL · Cap: $281.47B
LULU
Lululemon Athletica Inc.
$98.97
+2.16%
CONSUMER CYCLICAL · Cap: $11.42B
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 0.52. LULU earns a higher WallStSmart Score of 62/100 (C+).
BABA
Buy55
out of 100
Grade: C-
LULU
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.3%
Fair Value
$365.09
Current Price
$109.30
$255.79 discount
Margin of Safety
+70.5%
Fair Value
$597.24
Current Price
$98.97
$498.27 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
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
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, Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.77 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.
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 0.86 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
LULU generates stronger free cash flow (87M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (62/100 vs 55/100). BABA offers better value entry with a 58.3% 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?