Alibaba Group Holding Ltd (BABA)vsShopify Inc (SHOP)
BABA
Alibaba Group Holding Ltd
$140.06
-0.67%
CONSUMER CYCLICAL · Cap: $349.01B
SHOP
Shopify Inc
$110.41
-1.19%
TECHNOLOGY · Cap: $136.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 8122% more annual revenue ($1.02T vs $12.37B). SHOP leads profitability with a 10.8% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 0.81. SHOP earns a higher WallStSmart Score of 50/100 (C-).
BABA
Buy50
out of 100
Grade: C-
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.8%
Fair Value
$558.77
Current Price
$140.06
$418.71 discount
Margin of Safety
+26.1%
Fair Value
$158.22
Current Price
$110.41
$47.81 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
Generating 6.8B in free cash flow
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
1.7% revenue growth
Earnings declined 70.9%
Expensive relative to growth rate
Trading at 10.7x book value
Weak financial health signals
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 0.81 suggests the stock is reasonably priced for its growth.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.
Key Dynamics to Monitor
BABA profiles as a value stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.64 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
BABA generates stronger free cash flow (6.8B), providing more financial flexibility.
Bottom Line
BABA scores higher overall (50/100 vs 50/100). SHOP offers better value entry with a 26.1% 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?