Alibaba Group Holding Ltd (BABA)vsFerrari NV (RACE)
BABA
Alibaba Group Holding Ltd
$107.74
-0.94%
CONSUMER CYCLICAL · Cap: $281.47B
RACE
Ferrari NV
$398.00
+1.02%
CONSUMER CYCLICAL · Cap: $72.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 14111% more annual revenue ($1.04T vs $7.35B). RACE leads profitability with a 22.3% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.53. RACE earns a higher WallStSmart Score of 58/100 (C).
BABA
Buy55
out of 100
Grade: C-
RACE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.1%
Fair Value
$363.49
Current Price
$107.74
$255.75 discount
Margin of Safety
-64.1%
Fair Value
$250.99
Current Price
$398.00
$147.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
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
Moderate valuation
ROE of 7.0% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 16.5x 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, Debt/Equity, PEG Ratio. PEG of 0.53 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 P/E Ratio, Return on Equity, Profit Margin.
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 0.60 — expect wider price swings.
BABA is growing revenue faster at 8.6% — sustainability is the question.
RACE generates stronger free cash flow (330M), providing more financial flexibility.
Bottom Line
RACE scores higher overall (58/100 vs 55/100), backed by strong 22.3% margins. BABA offers better value entry with a 58.1% 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.
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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