Lear Corporation (LEA)vsMercadoLibre Inc. (MELI)
LEA
Lear Corporation
$141.50
-1.72%
CONSUMER CYCLICAL · Cap: $7.27B
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $84.81B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 35% more annual revenue ($31.80B vs $23.52B). MELI leads profitability with a 6.0% profit margin vs 2.3%. LEA appears more attractively valued with a PEG of 0.36. LEA earns a higher WallStSmart Score of 65/100 (B-).
LEA
Strong Buy65
out of 100
Grade: B-
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LEA.
Margin of Safety
+61.8%
Fair Value
$5279.65
Current Price
$1607.80
$3671.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 124.2% YoY
Attractively priced relative to earnings
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
4.7% revenue growth
2.3% margin — thin
Operating margin of 5.0%
Negative free cash flow — burning cash
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : LEA
The strongest argument for LEA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.36 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 1.07 suggests the stock is reasonably priced for its growth.
Bear Case : LEA
The primary concerns for LEA are Revenue Growth, Profit Margin, Operating Margin. Thin 2.3% margins leave little buffer for downturns.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
LEA profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.41 — 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
LEA scores higher overall (65/100 vs 58/100). MELI offers better value entry with a 61.8% 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.
Lear Corporation
CONSUMER CYCLICAL · AUTO PARTS · USA
Lear Corporation designs, develops, designs, manufactures, assembles, and supplies automotive seats, electrical distribution systems, and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. The company is headquartered in Southfield, Michigan.
MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Compare with Other AUTO PARTS Stocks
Want to dig deeper into these stocks?