Alibaba Group Holding Ltd (BABA)vsUlta Beauty Inc (ULTA)
BABA
Alibaba Group Holding Ltd
$130.00
-1.12%
CONSUMER CYCLICAL · Cap: $310.62B
ULTA
Ulta Beauty Inc
$515.04
+2.18%
CONSUMER CYCLICAL · Cap: $22.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 8160% more annual revenue ($1.02T vs $12.39B). BABA leads profitability with a 10.1% profit margin vs 9.3%. BABA appears more attractively valued with a PEG of 0.43. BABA earns a higher WallStSmart Score of 64/100 (C+).
BABA
Buy64
out of 100
Grade: C+
ULTA
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.2%
Fair Value
$382.49
Current Price
$130.00
$252.49 discount
Margin of Safety
-15.1%
Fair Value
$593.67
Current Price
$515.04
$78.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Earnings expanding 104.1% YoY
Reasonable price relative to book value
Generating 9.4B in free cash flow
Every $100 of equity generates 44 in profit
Safe zone — low bankruptcy risk
Areas to Watch
2.9% revenue growth
Distress zone — elevated risk
Operating margin of 1.0%
Weak financial health signals
Expensive relative to growth rate
Trading at 8.1x book value
Earnings declined 5.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.43 suggests the stock is reasonably priced for its growth.
Bull Case : ULTA
The strongest argument for ULTA centers on Return on Equity, Altman Z-Score. Revenue growth of 11.8% demonstrates continued momentum.
Bear Case : BABA
The primary concerns for BABA are Revenue Growth, Altman Z-Score, Operating Margin.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
ULTA carries more volatility with a beta of 0.89 — expect wider price swings.
ULTA is growing revenue faster at 11.8% — sustainability is the question.
BABA generates stronger free cash flow (9.4B), providing more financial flexibility.
Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BABA scores higher overall (64/100 vs 57/100). 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.
Ulta Beauty Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.
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