Alibaba Group Holding Ltd (BABA)vsShake Shack Inc (SHAK)
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
SHAK
Shake Shack Inc
$100.61
+0.46%
CONSUMER CYCLICAL · Cap: $4.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 70248% more annual revenue ($1.02T vs $1.45B). BABA leads profitability with a 8.9% profit margin vs 3.2%. BABA appears more attractively valued with a PEG of 0.80. SHAK earns a higher WallStSmart Score of 50/100 (D+).
BABA
Buy50
out of 100
Grade: C-
SHAK
Hold50
out of 100
Grade: D+
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
+35.5%
Fair Value
$150.43
Current Price
$100.61
$49.82 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
Revenue surging 21.9% year-over-year
Earnings expanding 28.7% YoY
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
3.2% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SHAK
The strongest argument for SHAK centers on Revenue Growth, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.
Bear Case : SHAK
The primary concerns for SHAK are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 92.3x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
BABA profiles as a value stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.75 — expect wider price swings.
SHAK is growing revenue faster at 21.9% — sustainability is the question.
SHAK generates stronger free cash flow (4M), providing more financial flexibility.
Bottom Line
BABA scores higher overall (50/100 vs 50/100). SHAK offers better value entry with a 35.5% margin of safety. Both earn "Buy" and "Hold" 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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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