WallStSmart

Alibaba Group Holding Ltd (BABA)vsSonic Automotive Inc (SAH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 6639% more annual revenue ($1.02T vs $15.19B). BABA leads profitability with a 10.1% profit margin vs 0.7%. BABA appears more attractively valued with a PEG of 0.39. BABA earns a higher WallStSmart Score of 64/100 (C+).

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 9.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

SAH

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 6.0Quality: 5.5
Piotroski: 4/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+60.0%)

Margin of Safety

+60.0%

Fair Value

$380.73

Current Price

$121.06

$259.67 discount

UndervaluedFair: $380.73Overvalued
SAHSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$46.08

Current Price

$80.58

$34.50 premium

UndervaluedFair: $46.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$270.36B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3910/10

Growing faster than its price suggests

EPS GrowthGrowth
104.1%10/10

Earnings expanding 104.1% YoY

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

SAH3 strengths · Avg: 9.3/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

BABA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-18.10B2/10

Negative free cash flow — burning cash

SAH4 concerns · Avg: 3.5/10
P/E RatioValuation
26.7x4/10

Moderate valuation

Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bull Case : SAH

The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, Price/Book. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.

Bear Case : SAH

The primary concerns for SAH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

SAH carries more volatility with a beta of 0.90 — expect wider price swings.

BABA is growing revenue faster at 2.9% — sustainability is the question.

SAH generates stronger free cash flow (-2M), providing more financial flexibility.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BABA scores higher overall (64/100 vs 53/100). 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.

Sonic Automotive Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.

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