WallStSmart

MercadoLibre Inc. (MELI)vsNike Inc (NKE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Nike Inc generates 46% more annual revenue ($46.40B vs $31.80B). NKE leads profitability with a 6.7% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.12. NKE earns a higher WallStSmart Score of 62/100 (C+).

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.35

NKE

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 6.7Quality: 5.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+61.3%)

Margin of Safety

+61.3%

Fair Value

$5220.85

Current Price

$1863.31

$3357.54 discount

UndervaluedFair: $5220.85Overvalued
NKEUndervalued (+63.5%)

Margin of Safety

+63.5%

Fair Value

$170.65

Current Price

$43.22

$127.43 discount

UndervaluedFair: $170.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
49.0%10/10

Revenue surging 49.0% year-over-year

Market CapQuality
$91.21B9/10

Large-cap with strong market position

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$1.28B8/10

Generating 1.3B in free cash flow

NKE4 strengths · Avg: 9.0/10
EPS GrowthGrowth
428.0%10/10

Earnings expanding 428.0% YoY

Market CapQuality
$62.62B9/10

Large-cap with strong market position

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
13.0x4/10

Trading at 13.0x book value

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

NKE3 concerns · Avg: 3.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Revenue GrowthGrowth
-1.1%2/10

Revenue declined 1.1%

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 49.0% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bull Case : NKE

The strongest argument for NKE centers on EPS Growth, Market Cap, Return on Equity.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 48.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.

Bear Case : NKE

The primary concerns for NKE are PEG Ratio, Profit Margin, Revenue Growth.

Key Dynamics to Monitor

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

MELI carries more volatility with a beta of 1.34 — expect wider price swings.

MELI is growing revenue faster at 49.0% — sustainability is the question.

NKE generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

NKE scores higher overall (62/100 vs 58/100). MELI offers better value entry with a 61.3% 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.

Nike Inc

CONSUMER CYCLICAL · FOOTWEAR & ACCESSORIES · USA

Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment.

Visit Website →

Want to dig deeper into these stocks?