WallStSmart

Inspired Entertainment Inc (INSE)vsMercadoLibre Inc. (MELI)

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Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 12402% more annual revenue ($35.18B vs $281.40M). MELI leads profitability with a 5.3% profit margin vs -3.3%. MELI earns a higher WallStSmart Score of 58/100 (C).

INSE

Hold

42

out of 100

Grade: D

Growth: 5.3Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: -0.27

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 2/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INSEUndervalued (+5.4%)

Margin of Safety

+5.4%

Fair Value

$8.96

Current Price

$3.97

$4.99 discount

UndervaluedFair: $8.96Overvalued
MELIUndervalued (+64.6%)

Margin of Safety

+64.6%

Fair Value

$5696.88

Current Price

$1857.99

$3838.89 discount

UndervaluedFair: $5696.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSE2 strengths · Avg: 10.0/10
EPS GrowthGrowth
398191.0%10/10

Earnings expanding 398191.0% YoY

Debt/EquityHealth
-22.0010/10

Conservative balance sheet, low leverage

MELI5 strengths · Avg: 8.8/10
Revenue GrowthGrowth
49.8%10/10

Revenue surging 49.8% year-over-year

Market CapQuality
$91.22B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
1.008/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

INSE4 concerns · Avg: 2.5/10
Market CapQuality
$120.46M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Revenue GrowthGrowth
-24.3%2/10

Revenue declined 24.3%

Altman Z-ScoreHealth
-0.272/10

Distress zone — elevated risk

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
12.0x4/10

Trading at 12.0x 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 : INSE

The strongest argument for INSE centers on EPS Growth, 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 1.00 suggests the stock is reasonably priced for its growth.

Bear Case : INSE

The primary concerns for INSE are Market Cap, Return on Equity, Revenue Growth.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 48.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

INSE profiles as a turnaround 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 (58/100 vs 42/100) 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.

Inspired Entertainment Inc

CONSUMER CYCLICAL · GAMBLING · USA

Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies server-based gaming (SBG) and virtual sports products to regulated lottery, betting and gaming operators around the world. The company is headquartered in New York, New York.

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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