AutoNation Inc (AN)vsMercadoLibre Inc. (MELI)
AN
AutoNation Inc
$208.18
+1.50%
CONSUMER CYCLICAL · Cap: $6.88B
MELI
MercadoLibre Inc.
$1,801.44
+0.15%
CONSUMER CYCLICAL · Cap: $91.21B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 16% more annual revenue ($31.80B vs $27.49B). MELI leads profitability with a 6.0% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.76. AN earns a higher WallStSmart Score of 63/100 (C+).
AN
Buy63
out of 100
Grade: C+
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AN.
Margin of Safety
+61.5%
Fair Value
$5235.16
Current Price
$1801.44
$3433.72 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Earnings expanding 31.5% YoY
Revenue surging 49.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.3B in free cash flow
Areas to Watch
2.5% margin — thin
Operating margin of 4.7%
Weak financial health signals
Revenue declined 2.1%
Trading at 12.5x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.76 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 49.0% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : AN
The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 48.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
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 1.34 — expect wider price swings.
MELI is growing revenue faster at 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
AN scores higher overall (63/100 vs 58/100). MELI offers better value entry with a 61.5% margin of safety. 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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