Alibaba Group Holding Ltd (BABA)vsShopify Inc (SHOP)
BABA
Alibaba Group Holding Ltd
$129.87
+3.50%
CONSUMER CYCLICAL · Cap: $299.57B
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 8698% more annual revenue ($1.02T vs $11.56B). SHOP leads profitability with a 10.6% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 1.56. BABA earns a higher WallStSmart Score of 49/100 (D+).
BABA
Hold49
out of 100
Grade: D+
SHOP
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-298.4%
Fair Value
$38.22
Current Price
$129.87
$91.65 premium
Margin of Safety
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 36.0B in free cash flow
Reasonable price relative to book value
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
1.7% revenue growth
Earnings declined 70.9%
Trading at 11.5x book value
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, Free Cash Flow, Price/Book.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x 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 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
BABA generates stronger free cash flow (36.0B), providing more financial flexibility.
Bottom Line
BABA scores higher overall (49/100 vs 48/100). Both earn "Hold" 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.
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.
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