MercadoLibre Inc. (MELI)vsErmenegildo Zegna NV (ZGN)
MELI
MercadoLibre Inc.
$1,792.63
+1.45%
CONSUMER CYCLICAL · Cap: $90.88B
ZGN
Ermenegildo Zegna NV
$12.45
+2.72%
CONSUMER CYCLICAL · Cap: $3.09B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 1407% more annual revenue ($28.89B vs $1.92B). MELI leads profitability with a 6.9% profit margin vs 5.1%. ZGN trades at a lower P/E of 25.6x. MELI earns a higher WallStSmart Score of 62/100 (C+).
MELI
Buy62
out of 100
Grade: C+
ZGN
Hold41
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.4%
Fair Value
$4968.55
Current Price
$1792.63
$3175.92 discount
Margin of Safety
-9.6%
Fair Value
$9.86
Current Price
$12.45
$2.59 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Generating 4.8B in free cash flow
Reasonable price relative to book value
Areas to Watch
Trading at 13.5x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
0.3% revenue growth
4.5% earnings growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : MELI
The strongest argument for MELI centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 44.6% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bull Case : ZGN
The strongest argument for ZGN centers on Price/Book.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 45.5x leaves little room for execution misses.
Bear Case : ZGN
The primary concerns for ZGN are P/E Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
MELI profiles as a hypergrowth stock while ZGN is a value play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.49 — expect wider price swings.
MELI is growing revenue faster at 44.6% — sustainability is the question.
MELI generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (62/100 vs 41/100) and 44.6% 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.
Ermenegildo Zegna NV
CONSUMER CYCLICAL · APPAREL MANUFACTURING · USA
Ermenegildo Zegna NV designs, manufactures, exports and sells men's clothing.
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