MercadoLibre Inc. (MELI)vsOn Holding Ltd (ONON)
MELI
MercadoLibre Inc.
$1,897.37
-0.47%
CONSUMER CYCLICAL · Cap: $96.19B
ONON
On Holding Ltd
$27.41
+2.09%
CONSUMER CYCLICAL · Cap: $9.35B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 992% more annual revenue ($35.18B vs $3.22B). ONON leads profitability with a 12.3% profit margin vs 5.3%. ONON appears more attractively valued with a PEG of 0.45. ONON earns a higher WallStSmart Score of 70/100 (B).
MELI
Buy60
out of 100
Grade: C+
ONON
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.8%
Fair Value
$5728.38
Current Price
$1897.37
$3831.01 discount
Margin of Safety
+9.8%
Fair Value
$50.24
Current Price
$27.41
$22.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 49.8% year-over-year
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Generating 3.4B in free cash flow
Growing faster than its price suggests
Earnings expanding 81.1% YoY
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Areas to Watch
Trading at 12.3x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : MELI
The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.8% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : ONON
The strongest argument for ONON centers on PEG Ratio, EPS Growth, Return on Equity. Revenue growth of 13.5% demonstrates continued momentum. PEG of 0.45 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 51.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : ONON
No major red flags identified for ONON, but monitor valuation.
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 2.08 — 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
ONON scores higher overall (70/100 vs 60/100) and 13.5% revenue growth. MELI offers better value entry with a 64.8% 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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