BorgWarner Inc (BWA)vsMercadoLibre Inc. (MELI)
BWA
BorgWarner Inc
$71.31
+3.33%
CONSUMER CYCLICAL · Cap: $14.73B
MELI
MercadoLibre Inc.
$1,695.65
+0.01%
CONSUMER CYCLICAL · Cap: $79.19B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 122% more annual revenue ($31.80B vs $14.33B). MELI leads profitability with a 6.0% profit margin vs 2.5%. BWA appears more attractively valued with a PEG of 0.61. BWA earns a higher WallStSmart Score of 61/100 (C+).
BWA
Buy61
out of 100
Grade: C+
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.4%
Fair Value
$104.75
Current Price
$71.31
$33.44 discount
Margin of Safety
+61.9%
Fair Value
$5294.84
Current Price
$1695.65
$3599.19 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 61.1% YoY
Growing faster than its price suggests
Reasonable price relative to book value
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
Areas to Watch
0.5% revenue growth
ROE of 6.6% — below average capital efficiency
2.5% margin — thin
Premium valuation, high expectations priced in
Trading at 11.8x book value
6.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BWA
The strongest argument for BWA centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.61 suggests the stock is reasonably priced for its growth.
Bull 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 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : BWA
The primary concerns for BWA are Revenue Growth, Return on Equity, Profit Margin. A P/E of 41.8x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 41.1x leaves little room for execution misses.
Key Dynamics to Monitor
BWA profiles as a value 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 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
BWA scores higher overall (61/100 vs 58/100). MELI offers better value entry with a 61.9% 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.
BorgWarner Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
BorgWarner Inc. is an American multinational automotive supplier headquartered in Auburn Hills, Michigan.
Visit Website →MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
Compare with Other AUTO PARTS Stocks
Want to dig deeper into these stocks?