WallStSmart

MercadoLibre Inc. (MELI)vsWinmark Corporation (WINA)

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Smart Verdict

WallStSmart Research — data-driven comparison

MercadoLibre Inc. generates 40556% more annual revenue ($35.18B vs $86.53M). WINA leads profitability with a 47.1% profit margin vs 5.3%. MELI appears more attractively valued with a PEG of 1.00. MELI earns a higher WallStSmart Score of 58/100 (C).

MELI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 2/9Altman Z: 1.35

WINA

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 8.5Value: 5.7Quality: 9.0
Piotroski: 4/9Altman Z: 7.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MELIUndervalued (+64.7%)

Margin of Safety

+64.7%

Fair Value

$5712.73

Current Price

$1752.61

$3960.12 discount

UndervaluedFair: $5712.73Overvalued

Intrinsic value data unavailable for WINA.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MELI5 strengths · Avg: 8.8/10
Revenue GrowthGrowth
49.8%10/10

Revenue surging 49.8% year-over-year

Market CapQuality
$91.22B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
1.008/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

WINA4 strengths · Avg: 10.0/10
Profit MarginProfitability
47.1%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
62.1%10/10

Strong operational efficiency at 62.1%

Debt/EquityHealth
-1.6510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.1110/10

Safe zone — low bankruptcy risk

Areas to Watch

MELI4 concerns · Avg: 3.3/10
Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WINA4 concerns · Avg: 3.0/10
P/E RatioValuation
26.7x4/10

Moderate valuation

Market CapQuality
$1.06B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-2.8%2/10

Earnings declined 2.8%

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 49.8% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bull Case : WINA

The strongest argument for WINA centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 47.1% and operating margin at 62.1%. PEG of 1.41 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 48.8x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : WINA

The primary concerns for WINA are P/E Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

MELI profiles as a hypergrowth stock while WINA 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 49.8% — 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 49/100) and 49.8% revenue growth. Both earn "Buy" and "Hold" 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.

Winmark Corporation

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Winmark Corporation is a franchisor of five retail store concepts that buy, sell, trade and consign used merchandise primarily in the United States and Canada. The company is headquartered in Minneapolis, Minnesota.

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