MercadoLibre Inc. (MELI)vsMagna International Inc (MGA)
MELI
MercadoLibre Inc.
$1,599.52
-1.93%
CONSUMER CYCLICAL · Cap: $81.09B
MGA
Magna International Inc
$54.38
-1.86%
CONSUMER CYCLICAL · Cap: $15.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 45% more annual revenue ($42.01B vs $28.89B). MELI leads profitability with a 6.9% profit margin vs 2.0%. MGA appears more attractively valued with a PEG of 0.51. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
MGA
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-654.2%
Fair Value
$267.58
Current Price
$1599.52
$1331.94 premium
Margin of Safety
-190.1%
Fair Value
$19.92
Current Price
$54.38
$34.46 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Generating 4.8B in free cash flow
Reasonable price relative to book value
Growing faster than its price suggests
Generating 1.3B in free cash flow
Areas to Watch
Trading at 12.0x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
2.1% revenue growth
ROE of 7.1% — below average capital efficiency
2.0% margin — thin
Earnings declined 35.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 0.76 suggests the stock is reasonably priced for its growth.
Bull Case : MGA
The strongest argument for MGA centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.51 suggests the stock is reasonably priced for its growth.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 40.6x leaves little room for execution misses.
Bear Case : MGA
The primary concerns for MGA are Revenue Growth, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while MGA is a value play — different risk/reward profiles.
MGA carries more volatility with a beta of 1.83 — expect wider price swings.
MELI is growing revenue faster at 44.6% — sustainability is the question.
MELI generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (62/100 vs 56/100) and 44.6% revenue growth. 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.
MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Magna International Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.
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