MercadoLibre Inc. (MELI)vsYum! Brands Inc (YUM)
MELI
MercadoLibre Inc.
$1,820.69
-0.51%
CONSUMER CYCLICAL · Cap: $95.74B
YUM
Yum! Brands Inc
$150.76
-1.00%
CONSUMER CYCLICAL · Cap: $41.85B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 265% more annual revenue ($31.80B vs $8.72B). YUM leads profitability with a 25.4% profit margin vs 6.0%. MELI appears more attractively valued with a PEG of 1.16. YUM earns a higher WallStSmart Score of 65/100 (C+).
MELI
Buy58
out of 100
Grade: C
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.3%
Fair Value
$5220.85
Current Price
$1820.69
$3400.16 discount
Margin of Safety
-79.7%
Fair Value
$88.51
Current Price
$150.76
$62.25 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
Strong operational efficiency at 32.2%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Areas to Watch
Trading at 12.7x book value
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.2%. Revenue growth of 12.3% demonstrates continued momentum.
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 1.70 is elevated, increasing financial risk.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while YUM 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 (1.3B), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 58/100), backed by strong 25.4% margins and 12.3% revenue growth. MELI offers better value entry with a 61.3% margin of safety. 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
Compare with Other INTERNET RETAIL Stocks
Want to dig deeper into these stocks?