WallStSmart

MercadoLibre Inc. (MELI)vsNathans Famous Inc (NATH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 20702% more annual revenue ($35.18B vs $169.13M). NATH leads profitability with a 11.8% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 0.92. MELI earns a higher WallStSmart Score of 60/100 (C+).

MELI

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35

NATH

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 7.0Value: 4.0Quality: 8.0
Piotroski: 3/9Altman Z: 5.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+64.8%)

Margin of Safety

+64.8%

Fair Value

$5728.38

Current Price

$1825.21

$3903.17 discount

UndervaluedFair: $5728.38Overvalued
NATHSignificantly Overvalued (-36.0%)

Margin of Safety

-36.0%

Fair Value

$74.16

Current Price

$97.94

$23.78 premium

UndervaluedFair: $74.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Revenue surging 49.8% year-over-year

Market CapQuality
$96.19B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

NATH4 strengths · Avg: 9.0/10
Debt/EquityHealth
-7.1210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.7710/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
23.9%8/10

Strong operational efficiency at 23.9%

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
11.8x4/10

Trading at 11.8x 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

NATH4 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Market CapQuality
$400.79M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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 0.92 suggests the stock is reasonably priced for its growth.

Bull Case : NATH

The strongest argument for NATH centers on Debt/Equity, Altman Z-Score, Operating Margin. Revenue growth of 15.0% demonstrates continued momentum.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 51.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : NATH

The primary concerns for NATH are PEG Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

MELI profiles as a hypergrowth stock while NATH is a value 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 (60/100 vs 49/100) 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.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

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

Nathans Famous Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Nathan's Famous, Inc. operates in the foodservice industry. The company is headquartered in Jericho, New York.

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