WallStSmart

AutoNation Inc (AN)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 5% more annual revenue ($28.89B vs $27.63B). MELI leads profitability with a 6.9% profit margin vs 2.4%. AN appears more attractively valued with a PEG of 0.74. MELI earns a higher WallStSmart Score of 62/100 (C+).

AN

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 6.0Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

MELI

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANSignificantly Overvalued (-37.4%)

Margin of Safety

-37.4%

Fair Value

$151.23

Current Price

$203.38

$52.15 premium

UndervaluedFair: $151.23Overvalued
MELIUndervalued (+59.6%)

Margin of Safety

+59.6%

Fair Value

$4995.04

Current Price

$1860.98

$3134.06 discount

UndervaluedFair: $4995.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

MELI5 strengths · Avg: 9.0/10
Return on EquityProfitability
36.0%10/10

Every $100 of equity generates 36 in profit

Revenue GrowthGrowth
44.6%10/10

Revenue surging 44.6% year-over-year

Market CapQuality
$94.35B9/10

Large-cap with strong market position

PEG RatioValuation
0.878/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

AN4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
14.0x4/10

Trading at 14.0x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
47.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on Altman Z-Score, Return on Equity, PEG Ratio. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bull Case : MELI

The strongest argument for MELI centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 44.6% demonstrates continued momentum. PEG of 0.87 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.2x leaves little room for execution misses.

Key Dynamics to Monitor

AN profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.49 — expect wider price swings.

MELI is growing revenue faster at 44.6% — sustainability is the question.

MELI generates stronger free cash flow (4.8B), providing more financial flexibility.

Bottom Line

MELI scores higher overall (62/100 vs 58/100) and 44.6% revenue growth. Both earn "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.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.

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