Comprehensive Stock Comparison
Compare Williams-Sonoma, Inc. (WSM) vs Alibaba Group Holding Limited (BABA) vs Amazon.com, Inc. (AMZN) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AMZN | 12.4% revenue growth vs WSM's -0.5% |
| Value | WSM | Lower P/E (23.6x vs 27.0x), PEG 0.75 vs 0.97 |
| Quality / Margins | WSM | 14.0% net margin vs AMZN's 10.8% |
| Stability / Safety | BABA | Beta 0.90 vs WSM's 1.40, lower leverage |
| Dividends | WSM | 1.1% yield, 19-year raise streak, vs BABA's 1.2% |
| Momentum (1Y) | BABA | +10.2% vs AMZN's -1.1% |
| Efficiency (ROA) | WSM | 20.8% ROA vs BABA's 6.5%, ROIC 47.3% vs 9.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Williams-Sonoma is a premium home furnishings and kitchenware retailer operating multiple lifestyle brands including Pottery Barn, West Elm, and its namesake Williams Sonoma stores. It generates revenue primarily through direct-to-consumer sales — about 65% from e-commerce and 35% from retail stores — across its portfolio of brands that each target different home decor segments. The company's key advantage is its strong multi-brand portfolio with distinct brand identities, a vertically integrated supply chain that allows for proprietary product development, and a loyal customer base cultivated through its iconic catalogs and digital marketing.
Alibaba is a Chinese e-commerce and technology conglomerate that operates digital marketplaces connecting buyers and sellers. It generates revenue primarily from its core commerce segments — China Commerce (~65%) and International Commerce (~10%) — along with cloud services (~10%) and logistics through Cainiao. Its key competitive advantage is its massive ecosystem network effect, where its platforms like Taobao and Tmall create a self-reinforcing cycle of merchants and consumers that's difficult for competitors to replicate.
Amazon is a global e-commerce and technology giant that operates online marketplaces, physical stores, and cloud computing services. It generates revenue primarily from online retail sales (~80% of total), Amazon Web Services cloud computing (~15%), and advertising/subscription services like Prime. Its key competitive advantage is an immense logistics network and data infrastructure moat—including AWS's dominant cloud position—that creates massive scale economies and ecosystem lock-in.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
WSM leads in 2 of 6 categories — strongest in Profitability & Efficiency and Total Returns. 4 categories are tied.
Financial Metrics (TTM)
BABA is the larger business by revenue, generating $1.01T annually — 127.9x WSM's $7.9B. Profitability is closely matched — net margins range from 14.0% (WSM) to 10.8% (AMZN). On growth, AMZN holds the edge at +13.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | WSMWilliams-Sonoma, … | BABAAlibaba Group Hol… | AMZNAmazon.com, Inc. |
|---|---|---|---|
| RevenueTrailing 12 months | $7.9B | $1.01T | $716.9B |
| EBITDAEarnings before interest/tax | $1.6B | $114.6B | $126.3B |
| Net IncomeAfter-tax profit | $1.1B | $123.4B | $77.7B |
| Free Cash FlowCash after capex | $1.1B | $2.6B | $7.7B |
| Gross MarginGross profit ÷ Revenue | +45.6% | +41.2% | +50.3% |
| Operating MarginEBIT ÷ Revenue | +18.1% | +10.9% | +11.2% |
| Net MarginNet income ÷ Revenue | +14.0% | +12.2% | +10.8% |
| FCF MarginFCF ÷ Revenue | +14.0% | +0.3% | +1.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.6% | +4.8% | +13.6% |
| EPS Growth (YoY)Latest quarter vs prior year | 0.0% | -52.0% | +4.8% |
Valuation Metrics
At 18.4x trailing earnings, BABA trades at a 37% valuation discount to AMZN's 29.3x P/E. Adjusting for growth (PEG ratio), WSM offers better value at 0.75x vs AMZN's 1.05x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | WSMWilliams-Sonoma, … | BABAAlibaba Group Hol… | AMZNAmazon.com, Inc. |
|---|---|---|---|
| Market CapShares × price | $25.3B | $2.66T | $2.25T |
| Enterprise ValueMkt cap + debt − cash | $25.5B | $2.67T | $2.32T |
| Trailing P/EPrice ÷ TTM EPS | 23.40x | 18.44x | 29.29x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.62x | 3.42x | 27.03x |
| PEG RatioP/E ÷ EPS growth rate | 0.75x | — | 1.05x |
| EV / EBITDAEnterprise value multiple | 15.33x | 104.23x | 18.38x |
| Price / SalesMarket cap ÷ Revenue | 3.28x | 18.33x | 3.14x |
| Price / BookPrice ÷ Book value/share | 12.29x | 2.19x | 5.55x |
| Price / FCFMarket cap ÷ FCF | 22.24x | 233.68x | 292.96x |
Profitability & Efficiency
WSM delivers a 53.4% return on equity — every $100 of shareholder capital generates $53 in annual profit, vs $11 for BABA. BABA carries lower financial leverage with a 0.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to WSM's 0.63x. On the Piotroski fundamental quality scale (0–9), WSM scores 7/9 vs AMZN's 6/9, reflecting strong financial health.
| Metric | WSMWilliams-Sonoma, … | BABAAlibaba Group Hol… | AMZNAmazon.com, Inc. |
|---|---|---|---|
| ROE (TTM)Return on equity | +53.4% | +11.1% | +18.9% |
| ROA (TTM)Return on assets | +20.8% | +6.5% | +9.5% |
| ROICReturn on invested capital | +47.3% | +9.6% | +14.7% |
| ROCEReturn on capital employed | +42.2% | +10.4% | +15.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.63x | 0.23x | 0.37x |
| Net DebtTotal debt minus cash | $134M | $66.8B | $66.2B |
| Cash & Equiv.Liquid assets | $1.2B | $181.7B | $86.8B |
| Total DebtShort + long-term debt | $1.3B | $248.5B | $153.0B |
| Interest CoverageEBIT ÷ Interest expense | — | 15.74x | 42.78x |
Total Returns (with DRIP)
A $10,000 investment in WSM five years ago would be worth $31,782 today (with dividends reinvested), compared to $6,154 for BABA. Over the past 12 months, BABA leads with a +10.2% total return vs AMZN's -1.1%. The 3-year compound annual growth rate (CAGR) favors WSM at 50.4% vs BABA's 19.2% — a key indicator of consistent wealth creation.
| Metric | WSMWilliams-Sonoma, … | BABAAlibaba Group Hol… | AMZNAmazon.com, Inc. |
|---|---|---|---|
| YTD ReturnYear-to-date | +9.8% | -7.5% | -7.3% |
| 1-Year ReturnPast 12 months | +7.0% | +10.2% | -1.1% |
| 3-Year ReturnCumulative with dividends | +240.0% | +69.4% | +122.9% |
| 5-Year ReturnCumulative with dividends | +217.8% | -38.5% | +33.5% |
| 10-Year ReturnCumulative with dividends | +742.6% | +116.1% | +660.0% |
| CAGR (3Y)Annualised 3-year return | +50.4% | +19.2% | +30.6% |
Risk & Volatility
BABA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than WSM's 1.40 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WSM currently trades 92.7% from its 52-week high vs BABA's 74.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | WSMWilliams-Sonoma, … | BABAAlibaba Group Hol… | AMZNAmazon.com, Inc. |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.40x | 0.90x | 1.31x |
| 52-Week HighHighest price in past year | $221.81 | $192.67 | $258.60 |
| 52-Week LowLowest price in past year | $130.07 | $95.73 | $161.38 |
| % of 52W HighCurrent price vs 52-week peak | +92.7% | +74.8% | +81.2% |
| RSI (14)Momentum oscillator 0–100 | 52.2 | 33.4 | 39.9 |
| Avg Volume (50D)Average daily shares traded | 830K | 10.2M | 40.7M |
Analyst Outlook
Analyst consensus: WSM as "Hold", BABA as "Buy", AMZN as "Buy". Consensus price targets imply 35.2% upside for AMZN (target: $284) vs -1.8% for WSM (target: $202). For income investors, BABA offers the higher dividend yield at 1.23% vs WSM's 1.06%.
| Metric | WSMWilliams-Sonoma, … | BABAAlibaba Group Hol… | AMZNAmazon.com, Inc. |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy | Buy |
| Price TargetConsensus 12-month target | $202.00 | $188.62 | $283.97 |
| # AnalystsCovering analysts | 56 | 58 | 94 |
| Dividend YieldAnnual dividend ÷ price | +1.1% | +1.2% | — |
| Dividend StreakConsecutive years of raises | 19 | 2 | — |
| Dividend / ShareAnnual DPS | $2.19 | $12.14 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.2% | +0.5% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Apr 20 | Feb 26 | Change |
|---|---|---|---|
| Williams-Sonoma, In… (WSM) | 100 | 1,138.46 | +1038.5% |
| Alibaba Group Holdi… (BABA) | 90.43 | 81.19 | -10.2% |
| Amazon.com, Inc. (AMZN) | 100 | 254.7 | +154.7% |
Williams-Sonoma, In… (WSM) returned +218% over 5 years vs Alibaba Group Holdi… (BABA)'s -38%. A $10,000 investment in WSM 5 years ago would be worth $31,782 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Williams-Sonoma, In… (WSM) | $5.1B | $7.7B | +51.7% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
| Amazon.com, Inc. (AMZN) | $136.0B | $716.9B | +427.2% |
Alibaba Group Holding Limited's revenue grew from $101.1B (2016) to $996.3B (2025) — a 28.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Williams-Sonoma, In… (WSM) | 6.0% | 14.6% | +142.9% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
| Amazon.com, Inc. (AMZN) | 1.7% | 10.8% | +521.4% |
Alibaba Group Holding Limited's net margin went from 71% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Williams-Sonoma, In… (WSM) | 16.7 | 21.1 | +26.3% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
| Amazon.com, Inc. (AMZN) | 188.6 | 32.2 | -82.9% |
Williams-Sonoma, Inc. has traded in a 7x–21x P/E range over 8 years; current trailing P/E is ~23x. Alibaba Group Holding Limited has traded in a 2x–9x P/E range over 9 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Williams-Sonoma, In… (WSM) | 1.71 | 8.79 | +415.0% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
| Amazon.com, Inc. (AMZN) | 0.25 | 7.17 | +2768.0% |
Alibaba Group Holding Limited's EPS grew from $34.00 (2016) to $53.60 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
Williams-Sonoma, Inc. generated $1B FCF in 2024 (-1% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
WSM vs BABA vs AMZN: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is WSM or BABA or AMZN a better buy right now?
Alibaba Group Holding Limited (BABA) offers the better valuation at 18.4x trailing P/E (3.4x forward), making it the more compelling value choice. Analysts rate Alibaba Group Holding Limited (BABA) a "Buy" — based on 58 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — WSM or BABA or AMZN?
On trailing P/E, Alibaba Group Holding Limited (BABA) is the cheapest at 18.4x versus Amazon.com, Inc. at 29.3x. On forward P/E, Alibaba Group Holding Limited is actually cheaper at 3.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Williams-Sonoma, Inc. wins at 0.75x versus Amazon.com, Inc.'s 0.97x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — WSM or BABA or AMZN?
Over the past 5 years, Williams-Sonoma, Inc. (WSM) delivered a total return of +217.8%, compared to -38.5% for Alibaba Group Holding Limited (BABA). A $10,000 investment in WSM five years ago would be worth approximately $32K today (assuming dividends reinvested). Over 10 years, the gap is even starker: WSM returned +742.6% versus BABA's +116.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — WSM or BABA or AMZN?
By beta (market sensitivity over 5 years), Alibaba Group Holding Limited (BABA) is the lower-risk stock at 0.90β versus Williams-Sonoma, Inc.'s 1.40β — meaning WSM is approximately 55% more volatile than BABA relative to the S&P 500. On balance sheet safety, Alibaba Group Holding Limited (BABA) carries a lower debt/equity ratio of 23% versus 63% for Williams-Sonoma, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — WSM or BABA or AMZN?
Williams-Sonoma, Inc. (WSM) is the more profitable company, earning 14.6% net margin versus 10.8% for Amazon.com, Inc. — meaning it keeps 14.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WSM leads at 18.5% versus 11.2% for AMZN. At the gross margin level — before operating expenses — AMZN leads at 50.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is WSM or BABA or AMZN more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Williams-Sonoma, Inc. (WSM) is the more undervalued stock at a PEG of 0.75x versus Amazon.com, Inc.'s 0.97x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Alibaba Group Holding Limited (BABA) trades at 3.4x forward P/E versus 27.0x for Amazon.com, Inc. — 23.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMZN: 35.2% to $283.97.
07Which pays a better dividend — WSM or BABA or AMZN?
In this comparison, BABA (1.2% yield), WSM (1.1% yield) pay a dividend. AMZN does not pay a meaningful dividend and should not be held primarily for income.
08Is WSM or BABA or AMZN better for a retirement portfolio?
For long-horizon retirement investors, Alibaba Group Holding Limited (BABA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.90), 1.2% yield, +116.1% 10Y return). Both have compounded well over 10 years (BABA: +116.1%, AMZN: +660.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between WSM and BABA and AMZN?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. WSM, BABA pay a dividend while AMZN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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