WallStSmart

Ambev SA ADR (ABEV)vsMercadoLibre Inc. (MELI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 205% more annual revenue ($88.21B vs $28.89B). ABEV leads profitability with a 17.7% profit margin vs 6.9%. MELI appears more attractively valued with a PEG of 1.14. MELI earns a higher WallStSmart Score of 60/100 (C+).

ABEV

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

MELI

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 6.7Quality: 5.3
Piotroski: 2/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$11.91

Current Price

$3.29

$8.62 discount

UndervaluedFair: $11.91Overvalued
MELIUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$4942.58

Current Price

$1632.52

$3310.06 discount

UndervaluedFair: $4942.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

Market CapQuality
$53.50B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

MELI4 strengths · Avg: 9.3/10
Return on EquityProfitability
36.0%10/10

Every $100 of equity generates 36 in profit

Revenue GrowthGrowth
44.6%10/10

Revenue surging 44.6% year-over-year

Market CapQuality
$94.80B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.08B8/10

Generating 2.1B in free cash flow

Areas to Watch

ABEV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

MELI4 concerns · Avg: 3.0/10
Price/BookValuation
12.3x4/10

Trading at 12.3x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
47.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.

Bull 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 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.

Bear Case : MELI

The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.4x leaves little room for execution misses.

Key Dynamics to Monitor

ABEV profiles as a declining stock while MELI is a hypergrowth play — different risk/reward profiles.

MELI carries more volatility with a beta of 1.41 — expect wider price swings.

MELI is growing revenue faster at 44.6% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

MELI scores higher overall (60/100 vs 57/100) and 44.6% revenue growth. ABEV offers better value entry with a 74.4% 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.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

MercadoLibre Inc.

CONSUMER CYCLICAL · INTERNET RETAIL · USA

MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.

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