WallStSmart

Huazhu Group Ltd (HTHT)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 32% more annual revenue ($35.18B vs $26.60B). HTHT leads profitability with a 18.9% profit margin vs 5.3%. HTHT appears more attractively valued with a PEG of 0.27. HTHT earns a higher WallStSmart Score of 74/100 (B).

HTHT

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 6.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.95

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

Intrinsic value data unavailable for HTHT.

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

HTHT4 strengths · Avg: 9.5/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

Free Cash FlowQuality
$3.21B8/10

Generating 3.2B in free cash flow

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

HTHT4 concerns · Avg: 2.8/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

Altman Z-ScoreHealth
0.952/10

Distress zone — elevated risk

Debt/EquityHealth
2.431/10

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 : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 31.1%. Revenue growth of 10.8% demonstrates continued momentum.

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 : HTHT

The primary concerns for HTHT are P/E Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 2.43 is elevated, increasing financial risk.

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

HTHT profiles as a mature 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

HTHT scores higher overall (74/100 vs 60/100), backed by strong 18.9% margins and 10.8% revenue growth. 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.

Huazhu Group Ltd

CONSUMER CYCLICAL · LODGING · China

Huazhu Group Limited, develops leased and owned, managed and franchised hotels mainly in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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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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