WallStSmart

Carter’s Inc (CRI)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 1081% more annual revenue ($35.18B vs $2.98B). CRI leads profitability with a 6.5% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 0.92. CRI earns a higher WallStSmart Score of 73/100 (B).

CRI

Strong Buy

73

out of 100

Grade: B

Growth: 6.0Profit: 6.0Value: 8.0Quality: 6.0
Piotroski: 3/9Altman Z: 2.52

MELI

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRIUndervalued (+36.8%)

Margin of Safety

+36.8%

Fair Value

$59.81

Current Price

$30.43

$29.38 discount

UndervaluedFair: $59.81Overvalued
MELIUndervalued (+64.8%)

Margin of Safety

+64.8%

Fair Value

$5728.38

Current Price

$1897.37

$3831.01 discount

UndervaluedFair: $5728.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRI4 strengths · Avg: 9.5/10
P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
47146.0%10/10

Earnings expanding 47146.0% YoY

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

MELI5 strengths · Avg: 8.8/10
Revenue GrowthGrowth
49.8%10/10

Revenue surging 49.8% year-over-year

Market CapQuality
$96.19B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

CRI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Market CapQuality
$1.18B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Debt/EquityHealth
1.153/10

Elevated debt levels

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CRI

The strongest argument for CRI centers on P/E Ratio, Price/Book, EPS Growth.

Bull Case : MELI

The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.8% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.

Bear Case : CRI

The primary concerns for CRI are PEG Ratio, Market Cap, Profit Margin.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 51.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

MELI carries more volatility with a beta of 1.31 — expect wider price swings.

MELI is growing revenue faster at 49.8% — sustainability is the question.

MELI generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

CRI scores higher overall (73/100 vs 60/100). MELI offers better value entry with a 64.8% 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.

Carter’s Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.

Want to dig deeper into these stocks?