Alibaba Group Holding Ltd (BABA)vsMagna International Inc (MGA)
BABA
Alibaba Group Holding Ltd
$137.30
-1.97%
CONSUMER CYCLICAL · Cap: $336.01B
MGA
Magna International Inc
$62.54
-0.90%
CONSUMER CYCLICAL · Cap: $16.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 2302% more annual revenue ($1.02T vs $42.32B). BABA leads profitability with a 8.9% profit margin vs 1.6%. MGA appears more attractively valued with a PEG of 0.35. MGA earns a higher WallStSmart Score of 55/100 (C-).
BABA
Buy50
out of 100
Grade: C-
MGA
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.7%
Fair Value
$557.09
Current Price
$137.30
$419.79 discount
Margin of Safety
+59.0%
Fair Value
$141.06
Current Price
$62.54
$78.52 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
Generating 6.8B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Moderate valuation
3.1% revenue growth
ROE of 6.0% — below average capital efficiency
1.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bull Case : MGA
The strongest argument for MGA centers on PEG Ratio, Price/Book. PEG of 0.35 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth.
Bear Case : MGA
The primary concerns for MGA are P/E Ratio, Revenue Growth, Return on Equity. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
MGA carries more volatility with a beta of 1.85 — expect wider price swings.
MGA is growing revenue faster at 3.1% — sustainability is the question.
BABA generates stronger free cash flow (6.8B), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MGA scores higher overall (55/100 vs 50/100). BABA offers better value entry with a 72.7% 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.
Magna International Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.
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