Allison Transmission Holdings Inc (ALSN)vsMercadoLibre Inc. (MELI)
ALSN
Allison Transmission Holdings Inc
$125.65
-3.41%
CONSUMER CYCLICAL · Cap: $10.31B
MELI
MercadoLibre Inc.
$1,475.09
-2.44%
CONSUMER CYCLICAL · Cap: $82.36B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 571% more annual revenue ($35.18B vs $5.24B). ALSN leads profitability with a 11.1% profit margin vs 5.3%. ALSN appears more attractively valued with a PEG of 0.56. ALSN earns a higher WallStSmart Score of 83/100 (A-).
ALSN
Exceptional Buy83
out of 100
Grade: A-
MELI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.0%
Fair Value
$95.45
Current Price
$125.65
$30.20 premium
Margin of Safety
+64.3%
Fair Value
$5649.80
Current Price
$1475.09
$4174.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 121.4% year-over-year
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Strong operational efficiency at 20.1%
Earnings expanding 41.1% YoY
Revenue surging 49.8% year-over-year
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Generating 2.4B in free cash flow
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Trading at 9.5x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ALSN
The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 121.4% demonstrates continued momentum. PEG of 0.56 suggests the stock is reasonably priced for its growth.
Bull Case : MELI
The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.8% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.
Bear Case : ALSN
The primary concerns for ALSN are Altman Z-Score, Debt/Equity. Debt-to-equity of 1.93 is elevated, increasing financial risk.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 1.59 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALSN profiles as a growth stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.31 — expect wider price swings.
ALSN is growing revenue faster at 121.4% — sustainability is the question.
MELI generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
ALSN scores higher overall (83/100 vs 60/100) and 121.4% revenue growth. MELI offers better value entry with a 64.3% margin of safety. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Allison Transmission Holdings Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.
Visit Website →MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Compare with Other AUTO PARTS Stocks
Want to dig deeper into these stocks?