BABA or GLBE: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors are evaluating Alibaba (BABA) and Global-e Online Ltd. (GLBE) for potential undervalued stock opportunities, with BABA currently appearing as the stronger option based on various financial metrics [1]. Group 1: Zacks Rank and Earnings Outlook - Alibaba holds a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings outlook, while Global-e Online Ltd. has a Zacks Rank of 3 (Hold) [3]. - The improvement in BABA's earnings outlook is noted to be stronger than that of GLBE [3]. Group 2: Valuation Metrics - BABA has a forward P/E ratio of 10.89, significantly lower than GLBE's forward P/E of 162.19, suggesting BABA is more undervalued [5]. - The PEG ratio for BABA is 0.36, indicating a favorable valuation relative to its expected earnings growth, while GLBE's PEG ratio is 2.75 [5]. - BABA's P/B ratio is 1.91, compared to GLBE's P/B of 6.88, further highlighting BABA's relative undervaluation [6]. Group 3: Value Grades - BABA has a Value grade of B, while GLBE has a Value grade of F, indicating a significant difference in perceived value between the two companies [6].