WallStSmart

MercadoLibre Inc. (MELI)vsMGM Resorts International (MGM)

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Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 65% more annual revenue ($28.89B vs $17.54B). MELI leads profitability with a 6.9% profit margin vs 1.2%. MELI appears more attractively valued with a PEG of 0.83. MGM earns a higher WallStSmart Score of 65/100 (C+).

MELI

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.04

MGM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 5.0Value: 6.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+59.5%)

Margin of Safety

+59.5%

Fair Value

$4981.85

Current Price

$1792.63

$3189.22 discount

UndervaluedFair: $4981.85Overvalued
MGMUndervalued (+61.6%)

Margin of Safety

+61.6%

Fair Value

$94.60

Current Price

$38.94

$55.66 discount

UndervaluedFair: $94.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI5 strengths · Avg: 9.0/10
Return on EquityProfitability
36.0%10/10

Every $100 of equity generates 36 in profit

Revenue GrowthGrowth
44.6%10/10

Revenue surging 44.6% year-over-year

Market CapQuality
$90.88B9/10

Large-cap with strong market position

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

MGM2 strengths · Avg: 9.0/10
EPS GrowthGrowth
115.7%10/10

Earnings expanding 115.7% YoY

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Areas to Watch

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
45.5x2/10

Premium valuation, high expectations priced in

MGM4 concerns · Avg: 2.0/10
Profit MarginProfitability
1.2%3/10

1.2% margin — thin

P/E RatioValuation
51.7x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
23.111/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : MGM

The strongest argument for MGM centers on EPS Growth, PEG Ratio. PEG of 0.97 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 45.5x leaves little room for execution misses.

Bear Case : MGM

The primary concerns for MGM are Profit Margin, P/E Ratio, Altman Z-Score. A P/E of 51.7x leaves little room for execution misses. Debt-to-equity of 23.11 is elevated, increasing financial risk.

Key Dynamics to Monitor

MELI profiles as a hypergrowth stock while MGM is a value play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.49 — 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

MGM scores higher overall (65/100 vs 62/100). MELI offers better value entry with a 59.5% 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.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.

MGM Resorts International

CONSUMER CYCLICAL · RESORTS & CASINOS · USA

MGM Resorts International is an American global hospitality and entertainment company operating destination resorts globally.

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