Chagee Holdings Limited American Depositary Shares (CHA)vsMercadoLibre Inc. (MELI)
CHA
Chagee Holdings Limited American Depositary Shares
$11.31
-2.84%
CONSUMER CYCLICAL · Cap: $2.21B
MELI
MercadoLibre Inc.
$1,863.31
+0.04%
CONSUMER CYCLICAL · Cap: $91.21B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 144% more annual revenue ($31.80B vs $13.06B). CHA leads profitability with a 7.2% profit margin vs 6.0%. CHA trades at a lower P/E of 15.9x. MELI earns a higher WallStSmart Score of 58/100 (C).
CHA
Hold48
out of 100
Grade: D+
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CHA.
Margin of Safety
+61.3%
Fair Value
$5220.85
Current Price
$1863.31
$3357.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
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
4.5% revenue growth
7.2% margin — thin
Earnings declined 40.3%
Trading at 13.0x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CHA
The strongest argument for CHA centers on Altman Z-Score, Debt/Equity, P/E Ratio.
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 : CHA
The primary concerns for CHA are Revenue Growth, Profit Margin, EPS Growth.
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
CHA profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI is growing revenue faster at 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MELI scores higher overall (58/100 vs 48/100) and 49.0% 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.
Chagee Holdings Limited American Depositary Shares
CONSUMER CYCLICAL · RESTAURANTS · USA
Chagee Holdings Ltd. is a Shanghai-based company founded in 2017 by Jun Jie Zhang. It specializes in selling freshly made tea drinks—such as tea lattes, teapuccinos, iced teas, and other creative beverages—along with related products like raw materials, packaging, and teahouse equipment.
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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