AMZN vs BABA
Amazon.com Inc. Common Stock vs Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share. Side-by-side ACCE scores, valuation, profitability, and growth.
$AMZN vs $BABA: Amazon Takes the Edge
$AMZN wins this matchup on growth and quality, though it carries a steep valuation premium. Revenue grew 16.6% year-over-year against $BABA's 2.9%, and earnings surged 74.8%. A 24.3% ROE and 12.2% net margin reflect a high-quality business, backed by an ACCE Quality score of 80. The catch: at a forward P/E of 31.2 and an EV/EBITDA of 15.43, the 6-model fair value sits at $131.92 — implying the current price of $230.92 is stretched by roughly 42.9%.
$BABA is the cheaper stock by every valuation measure — forward P/E of 15.0, EV/EBITDA of 7.80, and a 1.1% dividend yield — earning a Value score of 70 vs $AMZN's 41. The analyst target of $190.24 represents significant upside from $94.59. But a 9.2% ROE, near-stagnant revenue growth, an FCF yield of -22.2%, and a -17.0% one-year return signal real execution risk.
$AMZN is the stronger business. $BABA is the cheaper asset. For quality-focused portfolios, $AMZN's growth trajectory justifies the premium. Value-oriented mandates may find $BABA's discount compelling, but the negative FCF yield is a red flag that demands scrutiny.