Arista Networks (ANET)vsMercadoLibre Inc. (MELI)
ANET
Arista Networks
$172.62
-0.05%
TECHNOLOGY · Cap: $217.46B
MELI
MercadoLibre Inc.
$1,813.53
-1.97%
CONSUMER CYCLICAL · Cap: $91.94B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 221% more annual revenue ($28.89B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 1.14. ANET earns a higher WallStSmart Score of 68/100 (B-).
ANET
Strong Buy68
out of 100
Grade: B-
MELI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+70.4%
Fair Value
$449.02
Current Price
$172.62
$276.40 discount
Margin of Safety
+59.3%
Fair Value
$4955.41
Current Price
$1813.53
$3141.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 41.5%
Safe zone — low bankruptcy risk
Revenue surging 28.9% year-over-year
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Generating 4.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 13.6x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ANET
The strongest argument for ANET centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.0% and operating margin at 41.5%. Revenue growth of 28.9% demonstrates continued momentum.
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 1.14 suggests the stock is reasonably priced for its growth.
Bear Case : ANET
The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 62.8x leaves little room for execution misses.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.0x leaves little room for execution misses.
Key Dynamics to Monitor
ANET profiles as a growth stock while MELI is a hypergrowth play — different risk/reward profiles.
ANET carries more volatility with a beta of 1.67 — 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
ANET scores higher overall (68/100 vs 60/100), backed by strong 39.0% margins and 28.9% revenue growth. MELI offers better value entry with a 59.3% margin of safety. Both earn "Strong 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.
Arista Networks
TECHNOLOGY · COMPUTER HARDWARE · USA
Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.
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.
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