WallStSmart

Alphabet Inc Class A (GOOGL)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class A generates 1294% more annual revenue ($402.84B vs $28.89B). GOOGL leads profitability with a 32.8% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 0.82. GOOGL earns a higher WallStSmart Score of 70/100 (B).

GOOGL

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 10.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91

MELI

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGLUndervalued (+39.2%)

Margin of Safety

+39.2%

Fair Value

$506.38

Current Price

$307.69

$198.69 discount

UndervaluedFair: $506.38Overvalued
MELISignificantly Overvalued (-654.8%)

Margin of Safety

-654.8%

Fair Value

$267.38

Current Price

$1690.26

$1422.88 premium

UndervaluedFair: $267.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOGL6 strengths · Avg: 10.0/10
Market CapQuality
$3.76T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
31.6%10/10

Strong operational efficiency at 31.6%

Free Cash FlowQuality
$24.55B10/10

Generating 24.6B in free cash flow

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

MELI5 strengths · Avg: 9.0/10
Return on EquityProfitability
36.0%10/10

Every $100 of equity generates 36 in profit

Revenue GrowthGrowth
44.6%10/10

Revenue surging 44.6% year-over-year

Market CapQuality
$87.82B9/10

Large-cap with strong market position

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

GOOGL3 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

P/E RatioValuation
28.7x4/10

Moderate valuation

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
12.7x4/10

Trading at 12.7x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
44.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOGL

The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.

Bull Case : MELI

The strongest argument for MELI centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 44.6% demonstrates continued momentum. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bear Case : GOOGL

The primary concerns for GOOGL are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 44.1x leaves little room for execution misses.

Key Dynamics to Monitor

GOOGL profiles as a growth stock while MELI is a hypergrowth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.53 — expect wider price swings.

MELI is growing revenue faster at 44.6% — sustainability is the question.

GOOGL generates stronger free cash flow (24.6B), providing more financial flexibility.

Bottom Line

GOOGL scores higher overall (70/100 vs 62/100), backed by strong 32.8% margins and 18.0% revenue growth. 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.

Alphabet Inc Class A

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

Visit Website →

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?