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BABA vs LULU

BABA
Alibaba Group Holding Limited
NEUTRAL
Price
$173.23
Market Cap
$413.56B
Sector
Consumer Cyclical
AI Confidence
65%
LULU
lululemon athletica inc.
NEUTRAL
Price
$153.10
Market Cap
$17.96B
Sector
Consumer Cyclical
AI Confidence
55%

Valuation

P/E Ratio
BABA
23.6
LULU
11.55
Forward P/E
BABA
19.5
LULU
11.54
P/B Ratio
BABA
2.71
LULU
3.59
P/S Ratio
BABA
0.41
LULU
1.62
EV/EBITDA
BABA
20.1
LULU
6.54

Profitability

Gross Margin
BABA
41.17%
LULU
56.6%
Operating Margin
BABA
2.17%
LULU
22.31%
Profit Margin
BABA
12.19%
LULU
14.22%
ROE
BABA
11.19%
LULU
34.01%
ROA
BABA
4.03%
LULU
17.21%

Growth

Revenue Growth
BABA
4.8%
LULU
0.8%
Earnings Growth
BABA
-51.8%
LULU
-18.5%

Financial Health

Debt/Equity
BABA
0.27
LULU
0.36
Current Ratio
BABA
1.46
LULU
2.26
Quick Ratio
BABA
0.84
LULU
1.06

Dividends

Dividend Yield
BABA
0.59%
LULU
--
Payout Ratio
BABA
14.4%
LULU
0.0%

AI Verdict

BABA NEUTRAL

The Advanced Deterministic Scorecard reveals a mixed financial profile for Alibaba (BABA), with a weak Piotroski F-Score of 4/9 indicating suboptimal financial health, and no available Altman Z-Score limiting distress risk assessment. While valuation metrics appear favorable relative to peers—especially a Price/Sales of 0.41 and Forward P/E of 19.50—earnings growth is sharply negative (YoY EPS down 71%), and recent quarterly beats have reversed into consistent misses over the last four quarters. Strong insider sentiment and a bullish analyst consensus (strong_buy) contrast with deteriorating profitability and weak technical trends (10/100). The stock trades significantly above the Graham Number ($102.68) and intrinsic value estimate ($51.38), suggesting overvaluation unless growth rebounds materially.

Strengths
Attractive valuation multiples relative to sector: P/E (23.60) and Price/Sales (0.41) well below sector averages (Avg P/E: 49.05, Avg P/S: N/A but implied high)
Low debt burden with Debt/Equity of 0.27, well below sector average of 1.63, providing financial flexibility
Strong gross margin of 41.17%, reflecting pricing power and operational efficiency in core e-commerce
Risks
Weak Piotroski F-Score of 4/9 signals deteriorating financial health—penalizes health score per instructions
Earnings in freefall: YoY EPS growth down 71.0%, Q/Q down 70.4%, with last four quarters missing estimates by an average of -10.5%
Operating margin collapsed to 2.17%, indicating severe pressure in profitability despite stable gross margins
LULU NEUTRAL

LULU shows bullish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Key strengths include strong valuation and growth metrics. Price trades at a 64.9% premium to fair value estimate ($92.82), limiting near-term upside from a valuation perspective.

Strengths
Attractive valuation with P/E of 11.5
Low debt with D/E ratio of 0.36
Strong ROE of 34.0%
Risks
Limited historical data available for full assessment
Price trades at a 64.9% premium to fair value estimate ($92.82), limiting near-term upside from a valuation perspective.

Compare Another Pair

BABA vs LULU: Head-to-Head Comparison

This page compares Alibaba Group Holding Limited (BABA) and lululemon athletica inc. (LULU) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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