WallStSmart

MercadoLibre Inc. (MELI)vsNewegg Commerce Inc (NEGG)

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Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 2458% more annual revenue ($35.18B vs $1.38B). MELI leads profitability with a 5.3% profit margin vs 0.7%. NEGG trades at a lower P/E of 30.3x. MELI earns a higher WallStSmart Score of 58/100 (C).

MELI

Buy

58

out of 100

Grade: C

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

NEGG

Avoid

32

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 4.7Quality: 8.0
Piotroski: 5/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+64.7%)

Margin of Safety

+64.7%

Fair Value

$5712.73

Current Price

$1752.61

$3960.12 discount

UndervaluedFair: $5712.73Overvalued

Intrinsic value data unavailable for NEGG.

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
$91.22B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
1.008/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

NEGG3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
11.3x4/10

Trading at 11.3x 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

NEGG4 concerns · Avg: 3.3/10
P/E RatioValuation
30.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$286.30M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

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 1.00 suggests the stock is reasonably priced for its growth.

Bull Case : NEGG

The strongest argument for NEGG centers on Altman Z-Score, Debt/Equity, Price/Book.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 48.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : NEGG

The primary concerns for NEGG are P/E Ratio, Market Cap, Profit Margin. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

NEGG carries more volatility with a beta of 3.56 — 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 (58/100 vs 32/100) and 49.8% revenue growth. Both earn "Buy" and "Avoid" 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.

Newegg Commerce Inc

CONSUMER CYCLICAL · INTERNET RETAIL · China

Newegg Commerce, Inc. owns and operates Newegg.com, an online electronics retail platform in the United States.

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