Alibaba Group Holding Ltd (BABA)vsMerck & Company Inc (MRK)
BABA
Alibaba Group Holding Ltd
$129.87
+3.50%
CONSUMER CYCLICAL · Cap: $299.57B
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 1464% more annual revenue ($1.02T vs $65.01B). MRK leads profitability with a 28.1% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 1.56. MRK earns a higher WallStSmart Score of 59/100 (C).
BABA
Hold49
out of 100
Grade: D+
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-298.4%
Fair Value
$38.22
Current Price
$129.87
$91.65 premium
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 36.0B in free cash flow
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
1.7% revenue growth
Earnings declined 70.9%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : BABA
The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
BABA carries more volatility with a beta of 0.43 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
BABA generates stronger free cash flow (36.0B), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (59/100 vs 49/100), backed by strong 28.1% margins. Both earn "Buy" and "Hold" 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.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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