WallStSmart

Alibaba Group Holding Ltd (BABA)vsMurphy USA Inc (MUSA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 5373% more annual revenue ($1.04T vs $19.09B). BABA leads profitability with a 7.0% profit margin vs 3.2%. BABA appears more attractively valued with a PEG of 0.52. MUSA earns a higher WallStSmart Score of 67/100 (B-).

BABA

Buy

55

out of 100

Grade: C-

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

MUSA

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 5.7Quality: 4.5
Piotroski: 3/9Altman Z: 5.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$365.09

Current Price

$109.30

$255.79 discount

UndervaluedFair: $365.09Overvalued

Intrinsic value data unavailable for MUSA.

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
0.528/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

MUSA5 strengths · Avg: 9.6/10
Return on EquityProfitability
88.8%10/10

Every $100 of equity generates 89 in profit

Revenue GrowthGrowth
40.8%10/10

Revenue surging 40.8% year-over-year

EPS GrowthGrowth
53.1%10/10

Earnings expanding 53.1% YoY

Altman Z-ScoreHealth
5.8910/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

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

MUSA4 concerns · Avg: 3.5/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Comparative Analysis Report

WallStSmart Research

Bull 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 : MUSA

The strongest argument for MUSA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 40.8% demonstrates continued momentum.

Bear Case : BABA

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

Bear Case : MUSA

The primary concerns for MUSA are PEG Ratio, Price/Book, Profit Margin. Debt-to-equity of 3.49 is elevated, increasing financial risk. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

BABA profiles as a value stock while MUSA is a hypergrowth play — different risk/reward profiles.

BABA carries more volatility with a beta of 0.50 — expect wider price swings.

MUSA is growing revenue faster at 40.8% — sustainability is the question.

MUSA generates stronger free cash flow (123M), providing more financial flexibility.

Bottom Line

MUSA scores higher overall (67/100 vs 55/100) and 40.8% revenue growth. BABA offers better value entry with a 58.3% 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.

Murphy USA Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Murphy USA Inc. is engaged in the marketing of retail motor fuel products and convenience merchandise. The company is headquartered in El Dorado, Arkansas.

Visit Website →

Want to dig deeper into these stocks?