MercadoLibre Inc. (MELI)vsOn Holding Ltd (ONON)
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $84.81B
ONON
On Holding Ltd
$37.08
-1.04%
CONSUMER CYCLICAL · Cap: $12.72B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 920% more annual revenue ($31.80B vs $3.12B). ONON leads profitability with a 8.0% profit margin vs 6.0%. ONON appears more attractively valued with a PEG of 0.72. ONON earns a higher WallStSmart Score of 65/100 (B-).
MELI
Buy58
out of 100
Grade: C
ONON
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.8%
Fair Value
$5279.65
Current Price
$1607.80
$3671.85 discount
Margin of Safety
-25.6%
Fair Value
$36.05
Current Price
$37.08
$1.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 49.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.3B in free cash flow
Earnings expanding 81.1% YoY
Growing faster than its price suggests
Areas to Watch
Trading at 11.2x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 1.07 suggests the stock is reasonably priced for its growth.
Bull Case : ONON
The strongest argument for ONON centers on EPS Growth, PEG Ratio. Revenue growth of 14.5% demonstrates continued momentum. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.1x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Bear Case : ONON
The primary concerns for ONON are P/E Ratio. A P/E of 40.6x leaves little room for execution misses.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while ONON is a value play — different risk/reward profiles.
ONON carries more volatility with a beta of 2.10 — expect wider price swings.
MELI is growing revenue faster at 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ONON scores higher overall (65/100 vs 58/100) and 14.5% revenue growth. MELI offers better value entry with a 61.8% margin of safety. Both earn "Strong 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.
On Holding Ltd
CONSUMER CYCLICAL · FOOTWEAR & ACCESSORIES · USA
On Holding AG develops and distributes sports products worldwide. The company is headquartered in Zurich, Switzerland.
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