Alibaba Group Holding Ltd (BABA)vsMcDonald’s Corporation (MCD)
BABA
Alibaba Group Holding Ltd
$121.06
-3.88%
CONSUMER CYCLICAL · Cap: $270.36B
MCD
McDonald’s Corporation
$279.84
+0.86%
CONSUMER CYCLICAL · Cap: $203.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 3630% more annual revenue ($1.02T vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 10.1%. BABA appears more attractively valued with a PEG of 0.39. BABA earns a higher WallStSmart Score of 64/100 (C+).
BABA
Buy64
out of 100
Grade: C+
MCD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.0%
Fair Value
$380.73
Current Price
$121.06
$259.67 discount
Margin of Safety
-84.4%
Fair Value
$151.11
Current Price
$279.84
$128.73 premium
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
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
2.9% revenue growth
Operating margin of 1.0%
Weak financial health signals
Negative free cash flow — burning cash
ROE of 0.0% — below average capital efficiency
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 0.39 suggests the stock is reasonably priced for its growth.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
BABA profiles as a value stock while MCD is a mature play — different risk/reward profiles.
BABA carries more volatility with a beta of 0.46 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
BABA scores higher overall (64/100 vs 56/100). 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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