CarGurus (CARG)vsMercadoLibre Inc. (MELI)
CARG
CarGurus
$36.67
-0.76%
CONSUMER CYCLICAL · Cap: $3.31B
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 3086% more annual revenue ($28.89B vs $906.98M). CARG leads profitability with a 17.2% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.83. CARG earns a higher WallStSmart Score of 67/100 (B-).
CARG
Strong Buy67
out of 100
Grade: B-
MELI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.4%
Fair Value
$39.51
Current Price
$36.67
$2.84 discount
Margin of Safety
+59.5%
Fair Value
$4981.85
Current Price
$1792.63
$3189.22 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 28.7%
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Generating 4.8B in free cash flow
Areas to Watch
Trading at 9.3x book value
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CARG
The strongest argument for CARG centers on Return on Equity, Altman Z-Score, Operating Margin. Profitability is solid with margins at 17.2% and operating margin at 28.7%. PEG of 1.10 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 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : CARG
The primary concerns for CARG are Price/Book.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 45.5x leaves little room for execution misses.
Key Dynamics to Monitor
CARG profiles as a mature 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
CARG scores higher overall (67/100 vs 62/100), backed by strong 17.2% margins. MELI offers better value entry with a 59.5% 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.
CarGurus
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.
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 & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?