Driven Brands Holdings Inc (DRVN)vsMercadoLibre Inc. (MELI)
DRVN
Driven Brands Holdings Inc
$13.00
+0.85%
CONSUMER CYCLICAL · Cap: $2.22B
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $83.47B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 1574% more annual revenue ($31.80B vs $1.90B). DRVN leads profitability with a 9.7% profit margin vs 6.0%. DRVN appears more attractively valued with a PEG of 0.95. DRVN earns a higher WallStSmart Score of 69/100 (B-).
DRVN
Strong Buy69
out of 100
Grade: B-
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.6%
Fair Value
$16.48
Current Price
$13.00
$3.48 premium
Margin of Safety
+61.7%
Fair Value
$5264.50
Current Price
$1607.80
$3656.70 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 444.1% YoY
Every $100 of equity generates 20 in profit
Growing faster than its price suggests
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
Distress zone — elevated risk
Elevated debt levels
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DRVN
The strongest argument for DRVN centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.95 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 1.02 suggests the stock is reasonably priced for its growth.
Bear Case : DRVN
The primary concerns for DRVN are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 43.5x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
DRVN profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.35 — 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
DRVN scores higher overall (69/100 vs 58/100). MELI offers better value entry with a 61.7% 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.
Driven Brands Holdings Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Driven Brands Holdings Inc. provides automotive services to retail and commercial clients in North America and internationally. The company is headquartered in Charlotte, North Carolina.
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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