WallStSmart

Alibaba Group Holding Ltd (BABA)vsYum China Holdings Inc (YUMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 8301% more annual revenue ($1.04T vs $12.44B). YUMC leads profitability with a 7.8% profit margin vs 7.0%. BABA appears more attractively valued with a PEG of 0.52. YUMC earns a higher WallStSmart Score of 71/100 (B).

BABA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 8.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.02

YUMC

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 7.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BABAUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$365.09

Current Price

$109.30

$255.79 discount

UndervaluedFair: $365.09Overvalued

Intrinsic value data unavailable for YUMC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA4 strengths · Avg: 8.8/10
Market CapQuality
$281.47B10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

YUMC4 strengths · Avg: 8.0/10
PEG RatioValuation
0.978/10

Growing faster than its price suggests

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

Areas to Watch

BABA4 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

YUMC1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bull Case : YUMC

The strongest argument for YUMC centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 12.6% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

The primary concerns for BABA are P/E Ratio, Return on Equity, Profit Margin.

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin.

Key Dynamics to Monitor

BABA carries more volatility with a beta of 0.50 — expect wider price swings.

YUMC is growing revenue faster at 12.6% — sustainability is the question.

YUMC generates stronger free cash flow (305M), providing more financial flexibility.

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

Bottom Line

YUMC scores higher overall (71/100 vs 55/100) and 12.6% revenue growth. BABA offers better value entry with a 58.3% margin of safety. Both earn "Strong 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.

Yum China Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.

Visit Website →

Want to dig deeper into these stocks?