MercadoLibre Inc. (MELI)vsFerrari NV (RACE)
MELI
MercadoLibre Inc.
$1,844.58
+0.89%
CONSUMER CYCLICAL · Cap: $95.74B
RACE
Ferrari NV
$412.29
+0.62%
CONSUMER CYCLICAL · Cap: $70.80B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 332% more annual revenue ($31.80B vs $7.35B). RACE leads profitability with a 22.3% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.16. RACE earns a higher WallStSmart Score of 58/100 (C).
MELI
Buy58
out of 100
Grade: C
RACE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.2%
Fair Value
$5206.94
Current Price
$1844.58
$3362.36 discount
Margin of Safety
-64.1%
Fair Value
$249.97
Current Price
$412.29
$162.32 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 24 in profit
Generating 3.4B in free cash flow
Every $100 of equity generates 45 in profit
Strong operational efficiency at 31.1%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Trading at 12.8x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 17.2x book value
Expensive relative to growth rate
Distress zone — elevated risk
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 1.16 suggests the stock is reasonably priced for its growth.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 22.3% and operating margin at 31.1%.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 49.2x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while RACE is a mature 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 49.0% — 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 58/100) and 49.0% revenue growth. 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.
Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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