WallStSmart

Ethan Allen Interiors Inc (ETD)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 5971% more annual revenue ($35.18B vs $579.49M). ETD leads profitability with a 6.9% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 0.92. MELI earns a higher WallStSmart Score of 60/100 (C+).

ETD

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 5.5Value: 4.7Quality: 8.5
Piotroski: 4/9Altman Z: 3.93

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

ETDSignificantly Overvalued (-42.3%)

Margin of Safety

-42.3%

Fair Value

$16.60

Current Price

$21.93

$5.33 premium

UndervaluedFair: $16.60Overvalued
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

ETD4 strengths · Avg: 9.3/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.9310/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.0x8/10

Attractively priced relative to earnings

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

ETD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.994/10

Expensive relative to growth rate

Market CapQuality
$597.23M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Revenue GrowthGrowth
-8.5%2/10

Revenue declined 8.5%

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 : ETD

The strongest argument for ETD centers on Price/Book, Altman Z-Score, Debt/Equity.

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 : ETD

The primary concerns for ETD 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

ETD 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

MELI scores higher overall (60/100 vs 48/100) and 49.8% 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.

Ethan Allen Interiors Inc

CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA

Ethan Allen Interiors Inc. is an interior design company and home furnishings manufacturer and retailer in the United States and internationally. The company is headquartered in Danbury, Connecticut.

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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