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BABA vs. CPNG: Which Stock Is the Better Value Option?
BABABABA(BABA) ZACKS·2025-04-09 16:45

Core Viewpoint - Investors in the Internet - Commerce sector should consider Alibaba (BABA) as a more attractive option compared to Coupang, Inc. (CPNG) for undervalued stocks based on various financial metrics and rankings [1]. Valuation Metrics - Alibaba has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Coupang has a Zacks Rank of 3 (Hold) [3]. - BABA's forward P/E ratio is 9.18, significantly lower than CPNG's forward P/E of 54.55, suggesting that BABA is undervalued [5]. - The PEG ratio for BABA is 0.30, while CPNG's PEG ratio is 54.01, further indicating BABA's better valuation in terms of expected earnings growth [5]. - BABA's P/B ratio is 1.59, compared to CPNG's P/B of 8.70, highlighting BABA's superior market value relative to its book value [6]. Investment Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, BABA is positioned as the superior choice for value investors at this time [7].