Alibaba Group Holding Ltd (BABA)vsFerrari NV (RACE)
BABA
Alibaba Group Holding Ltd
$123.81
+1.35%
CONSUMER CYCLICAL · Cap: $292.80B
RACE
Ferrari NV
$412.29
+0.62%
CONSUMER CYCLICAL · Cap: $70.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 13821% more annual revenue ($1.02T vs $7.35B). RACE leads profitability with a 22.3% profit margin vs 10.1%. BABA appears more attractively valued with a PEG of 0.55. BABA earns a higher WallStSmart Score of 61/100 (C+).
BABA
Buy61
out of 100
Grade: C+
RACE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.3%
Fair Value
$374.15
Current Price
$123.81
$250.34 discount
Margin of Safety
-64.1%
Fair Value
$249.97
Current Price
$412.29
$162.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 104.1% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 45 in profit
Strong operational efficiency at 31.1%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
2.9% revenue growth
Operating margin of 1.0%
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 17.2x book value
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, EPS Growth, Debt/Equity. PEG of 0.55 suggests the stock is reasonably priced for its growth.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 22.3% and operating margin at 31.1%.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
BABA profiles as a value stock while RACE is a mature play — different risk/reward profiles.
RACE carries more volatility with a beta of 0.59 — expect wider price swings.
RACE is growing revenue faster at 8.4% — sustainability is the question.
RACE generates stronger free cash flow (330M), providing more financial flexibility.
Bottom Line
BABA scores higher overall (61/100 vs 58/100). 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.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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