WallStSmart

Alibaba Group Holding Ltd (BABA)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 3403% more annual revenue ($1.01T vs $28.89B). BABA leads profitability with a 12.2% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.82. MELI earns a higher WallStSmart Score of 62/100 (C+).

BABA

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 5.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

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

BABASignificantly Overvalued (-195.1%)

Margin of Safety

-195.1%

Fair Value

$51.61

Current Price

$134.43

$82.82 premium

UndervaluedFair: $51.61Overvalued
MELISignificantly Overvalued (-654.8%)

Margin of Safety

-654.8%

Fair Value

$267.38

Current Price

$1690.26

$1422.88 premium

UndervaluedFair: $267.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BABA2 strengths · Avg: 9.0/10
Market CapQuality
$326.38B10/10

Mega-cap, among the largest globally

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

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
$87.82B9/10

Large-cap with strong market position

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

BABA4 concerns · Avg: 3.3/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

EPS GrowthGrowth
-51.8%2/10

Earnings declined 51.8%

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
12.7x4/10

Trading at 12.7x 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
44.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, Price/Book.

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 0.82 suggests the stock is reasonably priced for its growth.

Bear Case : BABA

The primary concerns for BABA are PEG Ratio, Revenue Growth, Operating Margin.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 44.1x leaves little room for execution misses.

Key Dynamics to Monitor

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

MELI carries more volatility with a beta of 1.53 — 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 49/100) and 44.6% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Alibaba Group Holding Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

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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