DR Horton Inc (DHI)vsMercadoLibre Inc. (MELI)
DHI
DR Horton Inc
$146.49
-0.22%
CONSUMER CYCLICAL · Cap: $43.70B
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $84.81B
Smart Verdict
WallStSmart Research — data-driven comparison
DR Horton Inc generates 5% more annual revenue ($33.35B vs $31.80B). DHI leads profitability with a 9.5% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.07. MELI earns a higher WallStSmart Score of 58/100 (C).
DHI
Buy55
out of 100
Grade: C
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.8%
Fair Value
$100.86
Current Price
$146.49
$45.63 premium
Margin of Safety
+61.8%
Fair Value
$5279.65
Current Price
$1607.80
$3671.85 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
Weak financial health signals
Revenue declined 2.3%
Earnings declined 13.2%
Negative free cash flow — burning cash
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DHI
The strongest argument for DHI centers on Altman Z-Score, Debt/Equity, P/E Ratio. PEG of 1.28 suggests the stock is reasonably priced for its growth.
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 1.07 suggests the stock is reasonably priced for its growth.
Bear Case : DHI
The primary concerns for DHI are Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
DHI profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.41 — expect wider price swings.
MELI is growing revenue faster at 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (58/100 vs 55/100) and 49.0% revenue growth. Both earn "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.
DR Horton Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
D.R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas.
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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