We have 18" Madame Alexander Dolls from Costco. My MIL bought them for my younger DD when older DD got her American Girl. We got 1 last Christmas & 1 the Christmas before last.
I have to say the faces on the MA dolls are beautiful! Even prettier than the AG faces if you ask me. They are made well, have not broken or ripped. The biggest difference in quality as far as I can see is the hair. The AG hair gets messy when she is played with, but with a good brushing can be styled to look same as like new. The MA dolls wig is not as good a quality. the one from last year is still in pretty good shape, the one from 2 years ago is a bit of a mess! My DD was also only 4 when she got her so she has been through the ringer!
I think if your daughter wants a doll she can play with & dress, and AG isn't in the budget, she will be happy with the MA instead.