WallStSmart

Baidu Inc (BIDU)vsTIM Participacoes SA (TIMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baidu Inc generates 376% more annual revenue ($128.70B vs $27.04B). TIMB leads profitability with a 16.0% profit margin vs 1.0%. BIDU appears more attractively valued with a PEG of 0.63. TIMB earns a higher WallStSmart Score of 64/100 (C+).

BIDU

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 4.5Value: 6.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.18

TIMB

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 1.50
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BIDU.

TIMBOvervalued (-6.9%)

Margin of Safety

-6.9%

Fair Value

$25.37

Current Price

$21.41

$3.96 premium

UndervaluedFair: $25.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BIDU3 strengths · Avg: 8.7/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Free Cash FlowQuality
$2.67B8/10

Generating 2.7B in free cash flow

TIMB3 strengths · Avg: 8.7/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
24.3%8/10

Strong operational efficiency at 24.3%

Free Cash FlowQuality
$1.31B8/10

Generating 1.3B in free cash flow

Areas to Watch

BIDU4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

TIMB3 concerns · Avg: 4.0/10
Price/BookValuation
11.1x4/10

Trading at 11.1x book value

EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BIDU

The strongest argument for BIDU centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.63 suggests the stock is reasonably priced for its growth.

Bull Case : TIMB

The strongest argument for TIMB centers on P/E Ratio, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.0% and operating margin at 24.3%. PEG of 1.29 suggests the stock is reasonably priced for its growth.

Bear Case : BIDU

The primary concerns for BIDU are Return on Equity, Profit Margin, Piotroski F-Score. Thin 1.0% margins leave little buffer for downturns.

Bear Case : TIMB

The primary concerns for TIMB are Price/Book, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

BIDU profiles as a value stock while TIMB is a mature play — different risk/reward profiles.

BIDU carries more volatility with a beta of 0.53 — expect wider price swings.

TIMB is growing revenue faster at 6.5% — sustainability is the question.

BIDU generates stronger free cash flow (2.7B), providing more financial flexibility.

Bottom Line

TIMB scores higher overall (64/100 vs 50/100), backed by strong 16.0% margins. 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.

Baidu Inc

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China

Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, China.

TIM Participacoes SA

COMMUNICATION SERVICES · TELECOM SERVICES · USA

TIM SA is a telecommunications company in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

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