LKQ Corporation (LKQ)vsMercadoLibre Inc. (MELI)
LKQ
LKQ Corporation
$25.22
-0.16%
CONSUMER CYCLICAL · Cap: $6.68B
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $84.81B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 131% more annual revenue ($31.80B vs $13.79B). MELI leads profitability with a 6.0% profit margin vs 3.8%. LKQ appears more attractively valued with a PEG of 1.06. MELI earns a higher WallStSmart Score of 58/100 (C).
LKQ
Buy52
out of 100
Grade: C-
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.6%
Fair Value
$104.28
Current Price
$25.22
$79.06 discount
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
Reasonable price relative to book value
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
4.3% revenue growth
3.8% margin — thin
Weak financial health signals
Earnings declined 52.8%
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : LKQ
The strongest argument for LKQ centers on Price/Book, P/E Ratio. PEG of 1.06 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 : LKQ
The primary concerns for LKQ are Revenue Growth, Profit Margin, Piotroski F-Score. Thin 3.8% 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
LKQ 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
MELI scores higher overall (58/100 vs 52/100) and 49.0% revenue growth. LKQ offers better value entry with a 66.6% margin of safety. Both earn "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.
LKQ Corporation
CONSUMER CYCLICAL · AUTO PARTS · USA
LKQ Corporation (Like Kind and Quality) is an American provider of alternative and speciality parts to repair and accessorise automobiles and other vehicles.
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.
Compare with Other AUTO PARTS Stocks
Want to dig deeper into these stocks?