Alibaba Group Holding Ltd (BABA)vsPenn National Gaming Inc (PENN)
BABA
Alibaba Group Holding Ltd
$137.30
-1.97%
CONSUMER CYCLICAL · Cap: $336.01B
PENN
Penn National Gaming Inc
$15.94
-4.78%
CONSUMER CYCLICAL · Cap: $2.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 14286% more annual revenue ($1.02T vs $7.07B). BABA leads profitability with a 8.9% profit margin vs -13.5%. BABA appears more attractively valued with a PEG of 0.86. PENN earns a higher WallStSmart Score of 59/100 (C).
BABA
Buy50
out of 100
Grade: C-
PENN
Buy59
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
+82.6%
Fair Value
$76.92
Current Price
$15.94
$60.98 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
Reasonable price relative to book value
Earnings expanding 208.9% YoY
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
ROE of -40.1% — below average capital efficiency
Currently unprofitable
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 : PENN
The strongest argument for PENN centers on Price/Book, EPS Growth. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth.
Bear Case : PENN
The primary concerns for PENN are Return on Equity, Profit Margin.
Key Dynamics to Monitor
BABA profiles as a value stock while PENN is a turnaround play — different risk/reward profiles.
PENN carries more volatility with a beta of 1.44 — expect wider price swings.
PENN is growing revenue faster at 6.4% — sustainability is the question.
BABA generates stronger free cash flow (6.8B), providing more financial flexibility.
Bottom Line
PENN scores higher overall (59/100 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.
Penn National Gaming Inc
CONSUMER CYCLICAL · RESORTS & CASINOS · USA
Penn National Gaming, Inc. is an American operator of casinos and racetracks, based in Wyomissing, Pennsylvania.
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