WallStSmart

Alibaba Group Holding Ltd (BABA)vsMeta Platforms Inc. (META)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 358% more annual revenue ($1.04T vs $228.25B). META leads profitability with a 29.8% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.53. META earns a higher WallStSmart Score of 68/100 (B-).

BABA

Buy

55

out of 100

Grade: C-

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

META

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 7.3Quality: 7.0
Piotroski: 3/9Altman Z: 2.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.1%)

Margin of Safety

+58.1%

Fair Value

$363.49

Current Price

$108.76

$254.73 discount

UndervaluedFair: $363.49Overvalued
METAUndervalued (+17.5%)

Margin of Safety

+17.5%

Fair Value

$942.34

Current Price

$738.79

$203.55 discount

UndervaluedFair: $942.34Overvalued

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
0.538/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

META6 strengths · Avg: 9.0/10
Market CapQuality
$1.90T10/10

Mega-cap, among the largest globally

Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Return on EquityProfitability
26.1%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
29.8%9/10

Keeps 30 of every $100 in revenue as profit

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Revenue GrowthGrowth
28.0%8/10

Revenue surging 28.0% year-over-year

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

META3 concerns · Avg: 3.0/10
P/E RatioValuation
27.8x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-13.4%2/10

Earnings declined 13.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bull Case : META

The strongest argument for META centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 29.8% and operating margin at 34.8%. Revenue growth of 28.0% demonstrates continued momentum.

Bear Case : BABA

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

Bear Case : META

The primary concerns for META are P/E Ratio, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

BABA profiles as a value stock while META is a growth play — different risk/reward profiles.

META carries more volatility with a beta of 1.24 — expect wider price swings.

META is growing revenue faster at 28.0% — sustainability is the question.

META generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

META scores higher overall (68/100 vs 55/100), backed by strong 29.8% margins and 28.0% revenue growth. BABA offers better value entry with a 58.1% margin of safety. Both earn "Strong 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.

Meta Platforms Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, PCs, virtual reality headsets, wearables and home devices around the world. The company is headquartered in Menlo Park, California.

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