Alibaba Group Holding Ltd (BABA)vsRent the Runway Inc (RENT)
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
RENT
Rent the Runway Inc
$4.66
+3.10%
CONSUMER CYCLICAL · Cap: $156.33M
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 308191% more annual revenue ($1.02T vs $329.80M). BABA leads profitability with a 8.9% profit margin vs 6.8%. RENT trades at a lower P/E of 2.5x. BABA earns a higher WallStSmart Score of 50/100 (C-).
BABA
Buy50
out of 100
Grade: C-
RENT
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.9%
Fair Value
$562.19
Current Price
$131.88
$430.31 discount
Margin of Safety
+57.6%
Fair Value
$13.62
Current Price
$4.66
$8.96 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
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Revenue surging 20.0% year-over-year
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
0.0% earnings growth
Smaller company, higher risk/reward
6.8% margin — thin
ROE of -775.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bull Case : RENT
The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 20.0% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.
Bear Case : RENT
The primary concerns for RENT are EPS Growth, Market Cap, Profit Margin.
Key Dynamics to Monitor
BABA profiles as a value stock while RENT is a growth play — different risk/reward profiles.
RENT carries more volatility with a beta of 1.34 — expect wider price swings.
RENT is growing revenue faster at 20.0% — sustainability is the question.
RENT generates stronger free cash flow (-40M), providing more financial flexibility.
Bottom Line
BABA scores higher overall (50/100 vs 34/100). RENT offers better value entry with a 57.6% margin of safety. Both earn "Buy" and "Avoid" 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.
Rent the Runway Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.
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