MercadoLibre Inc. (MELI)vsFerrari NV (RACE)
MELI
MercadoLibre Inc.
$1,697.39
-1.65%
CONSUMER CYCLICAL · Cap: $84.92B
RACE
Ferrari NV
$368.34
+1.07%
CONSUMER CYCLICAL · Cap: $64.83B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 342% more annual revenue ($31.80B vs $7.20B). RACE leads profitability with a 22.2% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.03. MELI earns a higher WallStSmart Score of 58/100 (C).
MELI
Buy58
out of 100
Grade: C
RACE
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.7%
Fair Value
$5264.50
Current Price
$1697.39
$3567.11 discount
Margin of Safety
-50.9%
Fair Value
$244.05
Current Price
$368.34
$124.29 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
Every $100 of equity generates 39 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 29.5%
Areas to Watch
Trading at 11.8x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 13.9x book value
3.2% revenue growth
1.3% earnings growth
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 1.03 suggests the stock is reasonably priced for its growth.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 29.5%.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while RACE is a value play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.35 — 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
MELI scores higher overall (58/100 vs 50/100) 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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